New Delhi, Oct 22 (PTI) Gold price rose by Rs 350 to hit a fresh all-time high of Rs 81,000 per 10 grams while silver soared Rs 1,500 to record the Rs 1 lakh mark in the national capital on Tuesday amid a surge in demand, according to the All India Sarafa Association.
Continuing its upward movement for the fifth straight day, silver bounced Rs 1,500 to hit a fresh high of Rs 1.01 lakh per kg against the previous close of Rs 99,500 per kg on Monday.
"The current momentum in silver prices is driven by industrial demand, such as in expanding photovoltaic applications, followed by the jewellery and silverware segments," Arun Misra, CEO and Whole-time Director at Hindustan Zinc Ltd, said.
According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, silver prices have continued their rapid upward momentum, surging past Rs 1 lakh in the physical Indian markets, with the fast-paced rally suggesting that prices could reach Rs 1.1 lakh before Diwali.
Additionally, gold of 99.5 per cent purity jumped Rs 350 to hit a fresh high of Rs 80,600 per 10 grams.
Meanwhile, the metal of 99.5 per cent purity had finished at Rs 80,250 per 10 grams while gold of 99.9 per cent purity had closed at Rs 80,650 per 10 grams on Monday.
Bullion traders attributed the jump in precious metal rates to the rising consumption in industrial and wearable segments in the domestic market.
Furthermore, prices were led by growth concerns especially in China, coupled with escalating geopolitical tensions in West Asia and the status quo on interest rates by most global central banks, traders added.
In futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery rose Rs 208 or 0.27 per cent to Rs 78,247 per 10 grams.
On the MCX, gold prices have risen and the bullish momentum continues to drive prices higher. With the risk barometer staying high, this persistent demand for bullion is likely to keep driving gold prices upward in the near term, Trivedi said.
Market participants will be closely watching for any developments in interest rates, global conflicts and macroeconomic data, as these factors will play a key role in shaping gold's trajectory, he added.
Silver contracts for December delivery climbed Rs 882 or 0.91 per cent to Rs 98,330 per kg on the exchange.
Comex gold futures rose 0.30 per cent to a new record high of USD 2,747.10 per ounce in the Asian market hours.
"Gold prices edged higher to USD 2,747 per ounce as investors are eyeing the BRICS Summit, where Russia aims to challenge US dollar dominance with a new global financial payment system," Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.
Globally, silver comex futures went up nearly 1 per cent to USD 34.41 per ounce.
"Gold prices hit a record high once again on Monday, extending a rally from last week as uncertainty over the US election and anticipation of Israel's retaliation against Iran fuelled safe-haven demand.
"Bullion rose even as the dollar remained close to its highest levels since early-August, as traders pencilled in a slower pace of interest rate cuts by the US Federal Reserve," Manav Modi, Senior Analyst - Commodity Research at Motilal Oswal Financial Services Ltd, said.
This week, the focus will be on International Monetary Fund (IMF) meetings, preliminary manufacturing and services PMI from major economies, US durables goods orders and comments from Fed officials which will drive the bullion prices in the near future, Modi said.