Gold Price Soars on Dhanteras: Hits Rs 81,400

New Delhi, Oct 29 (PTI) Gold price rose by Rs 300 to Rs 81,400 per 10 grams, near its record high level, in the national capital on Tuesday due to heavy demand for Dhanteras by jewellers and retailers, according to the All India Sarafa Association.

Silver increased by Rs 200 to Rs 99,700 per kg on rising demand by industrial units and coin makers. It had closed at Rs 99,500 per kg in the previous close on Monday.

Traders said they are preferring silver coins for token buying while ignoring the traditional purchases of gold at existing levels.

Additionally, gold of 99.5 per cent purity jumped Rs 300 to near an all-time peak of Rs 81,000 per 10 grams.

On Monday, the precious metal of 99.9 per cent and 99.5 per cent purity had closed at Rs 81,100 and Rs 80,700 per 10 grams.

In futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery appreciated by Rs 178 or 0.23 per cent to Rs 78,744 per 10 grams.

"Gold prices in MCX remained positive, with Dhanteras adding enthusiasm for long positions. More buying occurred on this auspicious day, pushing the prices on the MCX and trading above Rs 80,000 in the physical jewellery market," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

Silver contracts for December delivery bounced Rs 786 or 0.81 per cent to Rs 98,210 per kg on the MCX.

Globally, Comex gold futures rose 0.23 per cent to USD 2,762.20 per ounce.

"Gold advanced toward a record in the European trading hours on Tuesday amid concerns about the US Presidential election and escalating US debt crisis continue to fuel safe-haven demand, pushing flows into the precious metal," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

According to Pranav Mer, VP - Research (Commodity & Currency) BlinkX and JM Financial, gold continues to trade positively with buying seen at every small correction over the past three trading sessions.

Focus this week will remain on the US Presidential elections and the Federal Reserve's monetary policy outcome next week, Mer said.

"Traders have turned to safe-haven assets due to the ongoing war between Russia and Ukraine, geopolitical tensions in the Middle East, and the significant 50 basis point rate cut by the Fed - the largest in over four years - which has boosted the appeal of the precious metal," Deveya Gaglani, Research Analyst - Commodities, Axis Securities, said.

Comex silver futures traded 0.95 per cent higher USD 34.33 per ounce in the Asian market hours.

"Focus this week will be on Manufacturing PMI from major economies such as US GDP, Inflation, Consumer confidence, and jobs market data which will provide more insights on the US Federal Reserve's future monetary policy interest rate path," Manav Modi, Senior Analyst, Commodity Research, Motilal Oswal Financial Services Ltd, said.