Gold prices touch record high of Rs 78,700 per 10 grams as demand jumps

Gold prices: Rising by Rs 250 on brisk buying by jewellers and a positive global trend, gold prices today touched a new all-time high of Rs 78,700 for 10 grams on Monday. The advance came even as the yellow metal had closed on Friday at Rs 78,450 per 10 grams.

Related to this, gold of 99.5 per cent purity also advanced by Rs 200 to Rs 78,300 per 10 grams against Rs 78,100 in the previous session. Silver prices declined by Rs 200 to Rs 94,000 per kg from Rs 94,200 per kg on Friday, said the All India Sarafa Association.

Traders attributed the rally in gold prices to higher domestic demand from stockists and retailers. A downfall in equity markets further prompted investors to seek safe haven, such as gold. Asian trading hours saw trade in gold at Comex, which was up 0.14 per cent at USD 2,671.50 per ounce. According to analysts, gold is steady with tempered hopes for an aggressive cut in U.S. Federal Reserve interest rates contributing to safe-haven demand amid ongoing tensions in the Middle East.

"Gold prices may continue to trade in a narrow range as caution prevails ahead of U.S. inflation numbers," said Kaynat Chainwala, AVP of Commodity Research at Kotak Securities.

Pranav Mer, Vice President of EBG - Commodity & Currency Research at JM Financial Services, who sees some key events of the week that will be watched when coming to the US Consumer Price Index (CPI) and consumer sentiment data, also mentioned the Middle East conflict, which is the second development worth paying attention to since it has effects on gold in the days ahead.

With PTI Inputs