Gold and silver surged to new peaks on Friday on bull run with the precious commodity touching Rs 74,000 per 10 grams mark at a local gold shop here yesterday on bullish trends abroad.
At HDFC Securities, gold futures spurted Rs 400 to touch new all-time peak of Rs 74,100 per 10 grams in the national capital today. It had ended at Rs 73,700 per 10 grams the previous day.
Like that, silver also rose by Rs 100 and traded at Rs 86,600 per kg at an all-time high.
"Spot gold prices (24 carats) in the Delhi markets are trading at a record high of Rs 74,100 per 10 grams, up by Rs 400 amid a positive trend in the overseas markets," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
In the overseas markets, spot gold at Comex was trading at USD 2,390 an ounce, a gain of USD 15 over the previous close.
Gold in the global market jumped near a record high during the Asian trading hours on Friday, after it was reported that Israel had attacked targets on Iranian soil, days after Iran launched an attack on Israel in response to a raid on its consulate in Syria.
This has increased the possibility of a larger regional conflict that would support higher gold prices.
Silver was quoted higher at USD 28.29 per ounce. In the previous close, it had finished at USD 28.25 per ounce.
According to market analysts, a string of reports, including US inflation data which has remained hotter than forecast this year, have pushed the top US Federal Reserve officials to say recently they could hold interest rates high for a while.
That's a disappointment after the Fed had earlier signaled that three cuts to interest rates might be possible this year. But Fed officials have been adamant that they want to be sure inflation is heading down toward their 2 per cent target before lowering the Fed's main interest rate from its highest level since 2001.
Gold prices are likely to react to news flows related to both geopolitical tensions and updates on interest rates from the Federal Reserve," said Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities.
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