NEW DELHI, Feb 6: Continuing the record-setting trend, gold prices climbed Rs 270 to hit a new lifetime high of Rs 86,070 per 10 grams in the national capital on Thursday as the rupee slid to all-time low levels and stock markets closed with losses.
Gold of 99.5 per cent purity gained Rs 270 to hit a new high of Rs 85,670 per 10 grams. The metal had finished at Rs 85,400 per 10 grams on Tuesday. Bullion markets were closed on Wednesday due to Delhi Assembly elections.
Sustained buying by local jewellers, a weak rupee and losses in equity market aided the rally in the yellow metal, traders said. In this year, the yellow metal has soared by Rs 6,680 per 10 grams or 8.41 per cent on safe-haven demand and firm global trends.
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However, silver prices remained flat at Rs 96,500 per kg.
On Thursday, the rupee plunged 14 paise to close at an all-time low of 87.57 (provisional) against the US dollar as rising odds of a rate cut by the Reserve Bank of India in its monetary policy meeting on Friday pressurised the rupee. A weak rupee makes the dollar-priced gold imports dearer.
The precious metal, however, dropped in futures trade.
The April month contract of gold fell Rs 41 to Rs 84,526 per 10 grams on MCX, retreating from record levels hit on Wednesday.
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said, “Market participants remain focused on the upcoming RBI monetary policy and the US non-farm payrolls and unemployment data scheduled for release on Friday.
“Rupee movement and Comex gold trends will play a crucial role in determining the next price action for gold,” Trivedi added.
Silver futures for March delivery declined Rs 934 or 0.97 per cent to Rs 95,031 per kg on the Multi Commodity Exchange (MCX).
In the global markets, Comex gold futures for April delivery decreased by USD 12 per ounce or 0.41 per cent to USD 2,881 per ounce. On Wednesday, the Comex futures surged to hit a another high of USD 2,906 per ounce. (PTI)
