New Delhi, Oct 18 (PTI) Gold hit a record high of Rs 79,900 per 10 gram on Friday in the national capital, rising by Rs 550 on strong festive season demand, according to the All India Sarafa Association.
The precious metal of 99.9 per cent purity had closed at Rs 79,350 per 10 gram in the previous trade on Thursday.
Rallying for the third consecutive day, gold of 99.5 per cent purity bounced Rs 550 to hit a fresh high of Rs 79,500 per 10 gram. It had settled at Rs 78,950 per 10 gram in the previous session.
Meanwhile, silver leapt Rs 1,000 to Rs 94,500 per kilogram. On Thursday, silver remained flat at Rs 93,500 per kg.
In futures trade, gold contracts for December delivery were trading at Rs 77,620 per 10 gram on the Multi Commodity Exchange (MCX). During the day, the gold futures touched a lifetime high of Rs 77,667 per 10 gram.
Market experts said the demand for precious metals has strengthened to a record level in the domestic market, with a boost in customer buying during the festival season. Investors are treating the yellow metal as safe haven amid uncertainty due to ongoing tension in the Middle East and upcoming US presidential polls.
On MCX, silver contracts for December delivery sprung Rs 1,231 or 1.34 per cent to Rs 92,975 per kg.
Major Western central bankers are pursuing dovish monetary policy, which also supports gold prices, Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities, said.
Manav Modi, Senior Analyst - Commodity Research at Motilal Oswal Financial Services Ltd, said:"Gold prices hit a record on both Comex as well as on domestic front benefiting from safe-haven demand with just weeks left to a closely contested US presidential election, while an interest rate cut by the European Central Bank also helped."
Globally, Comex gold futures increased 0.76 per cent to USD 2,728.10 per ounce.
"Gold prices reached an all-time high, surpassing USD 2,700 per ounce fuelled by heightened safe-haven demand amid Israel’s military actions in the Middle East," Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Silver futures climbed 1.70 per cent to USD 32.32 per ounce In the Asian market hours.
Despite strong US retail sales and labour market data, "this robust strength is largely driven by the expectation of ongoing interest rate cuts in the US, with further reductions anticipated in the near future," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.