Gold prices soar to a new high; hit Rs 30,420/10gm

Prices of the precious metal spurted by Rs 270 to surpass its previous record of Rs 30,400 set on June 6.

In Mumbai, gold rose by an identical Rs 270 from Rs 29,740 to Rs 30,100 per 10 gms. In other markets like Kolkata and Chennai, gold gained Rs 255 each per 10 gms to end at Rs 30,300 and Rs 30,240 respectively.

Traders said the market sentiment firmed up on heavy purchases by jewellers and stockists for the marriage season beginning at the end of this week. The uptrend was further supported by a firming global trend as weakening dollar (against theeuro) boosted the demand for bullion as an alternative investment.

In London, gold gained 0.2% to USD 1,613.29 an ounce. "Persistent fears over the euro zone debt and gloomy economy outlook attracted some safe haven buying in the precious metal. Dollar weakening against its major peers supported the sentiments too," said brokerage Geojit Comtrade.

In the futures market, gold prices also shot up. At the Multi Commodity Exchange, gold for delivery in October rose by Rs 43, or 0.14%, to Rs 30,340 per 10 grams.

Prices of silver too rose with the metal jumping by Rs 600 to Rs 55,600 per kg on increased offtake by industrial units and coins makers. Silver coins spurted by Rs 1,000 to Rs 65,000 for buying and Rs 66,000 (100 pieces).