Gold Hits Record High of Rs 78,450/10 gm on Festive Demand

New Delhi, Oct 4 (PTI) Gold prices rose by Rs 150 to hit a fresh all-time high of Rs 78,450 per 10 grams in the national capital on Friday on increased demand from jewellers and retailers driven by the ongoing festive season.

The precious metal closed at Rs 78,300 per 10 grams on Thursday.

Silver surged Rs 1,035 to Rs 94,200 per kg from Rs 93,165 per kg in the previous session, according to the All India Sarafa Association.

Meanwhile, gold of 99.5 per cent purity climbed Rs 200 to reach an all-time high level of Rs 78,100 per 10 grams.

Bullion traders attributed the rise in precious metal prices to the emergence of buying by jewellers and retailers driven by the ongoing 'Navratri' festival.

In futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery rose Rs 131 or 0.17 per cent to Rs 76,375 per 10 grams, hovering near an all-time high.

"Silver witnessed steady moves as participants widened their bets on a firm spot demand seen in physical markets due to the start of the festive season in India," Maneesh Sharma, AVP - Commodities & Currencies, Anand Rathi Shares and Stock Brokers, said.

Silver contracts for December delivery climbed Rs 219 or 0.24 per cent to Rs 93,197 per kg on the MCX.

"In silver futures on Comex suggest prices remain firm towards the start of the next week with new highs may be tested in the upcoming sessions," Sharma added.

In the Asian trading hours, Comex gold is trading flat at USD 2,678.90 per ounce.

"Gold prices continue to trade steady as safe-haven demand from escalating tensions in the Middle East offset pressure from a stronger dollar after investors toned down expectations of another big interest-rate cut from the US Federal Reserve," Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Ltd, said.
However, silver was quoted lower at USD 32.37 per ounce in the overseas markets.

"Traders are waiting for the US job market report due to release later on Friday to assess the labour market's health, which is likely to influence the Fed's future monetary policy interest rate path," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.