Gold prices zoomed to an all-time high of Rs 19,050 per 10 gm in the national capital on Tuesday on skyrocketing global rates amid the ongoing marriage season in India.
In international markets, gold prices surged for the seventh straight day as the European debt crisis increased demand for the precious metal as a safe haven.
Bullion in the Asian region gained as much as 0.5% to $1,222.47 an ounce, its highest level since May 19, as the euro extended its 2.4% decline against the US dollar last week.
“The only trigger for domestic gold prices touching a new high is rupee depreciation,” said Kochi-based commodity brokerage firm JRG Wealth vice-president and research head, Harish G.
The Indian rupee depreciated by 21 paise to 46.57 a dollar in early trade at the Interbank Foreign Exchange on Tuesday on capital outflows by foreign funds and the dollar’s gain overseas. “The global international market is strong, but prices are not rallying at very high level,” he added.
“At present, gold prices in the global market are ruling $1,220 per ounce, below the last high of $1,249.4 per ounce,” he said.
The precious metal’s rise in future trading was another supporting factor boosting the sentiment in the physical market. Gold has gained 8.3% over the past two months in global markets and reached a record $1,249.40 an ounce on May 14 on concerns that European measures to cut deficits and contain sovereign debt risks will curb growth in the region and weaken the euro.
Meanwhile, gold futures on the MCX struck a fresh record of Rs 18,659 per 10 gm, before easing a tad to Rs 18,649, still up 1.44%. The contract breached the last record of Rs 18,648 hit on May 26.
