Indian gold price breaks new record above Rs 12,000

Buoyed by trend in world oil prices, Indian Gold Prices on Wednesday rose to Rs 12,000 per 10 grams for the first time ever in the New Delhi bullion market.

The latest surge for Gold is attributed locally to aggressive buying by jewelry stockists and retailers amid the strong global Gold Market.

Standard gold and ornaments shot up by Rs 200 each to Rs 12,040 and Rs 11,890 per 10 grams respectively. Sovereign gold also gained Rs 100 to Rs 9,600 per each piece of eight grams of bullion.

Market sentiment turned bullish in Delhi, where retail jewelry demand had slumped in response to the record high Gold Prices starting in Nov. last year, after news of a sharp rise in world Gold Prices, apparently driven by a record hike in crude prices above $100 per barrel.

Some Indian investors have now shifted their funds out of equities due to volatile trading in the Sensex, and parked this money in the Gold Bullion market for what they believe is a safe investment.

Indian marketmen also said jewelry fabricators and retailers have raised their buying, triggered by the firming trend in global Gold Prices.

Silver was also 0.3% higher at $17.58 an ounce today, encouraging brisk buying activity in Delhi above Rs 21,840 per kg. Weekly-based delivery rose Rs 370 to Rs 22,440 per kg on speculative buying.

Silver coins also traded higher, up by Rs 100 to Rs 26,100 for buying and Rs 26,200 for selling of 100 coins.

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