Gold prices hit record Rs 78,000 mark on strong global cues; silver soars by Rs 1,000

Gold prices on Thursday jumped by Rs 400 to breach a record Rs 78,000 per 10 gram level in the national capital on sustained buying by jewellers as well as strong trends in global markets.

Maintaining its record-breaking run for the second day, gold spurted by Rs 400 to a fresh lifetime high of Rs 78,250 per 10 grams, according to the All India Sarafa Association. The precious metal had closed at Rs 77,850 per 10 grams on Wednesday.

Silver also soared by Rs 1,000 to Rs 94,000 per kg on robust demand from industrial units and coin makers amid strong overseas trend.

The metal had finished at Rs 93,000 per kg in the previous session.

In addition, gold of 99.5 per cent purity also hit a fresh high of Rs 77,900 per 10 grams. On Wednesday, the yellow metal had ended at Rs 77,500 per 10 grams.

Traders said a rise in local demand, coupled with robust global trend supported gold prices.

Meanwhile, in the futures trade, gold contracts for October delivery rose Rs 162 or 0.22 per cent to trade at Rs 75,475 per 10 grams on the Multi Commodity Exchange (MCX).

Silver contracts for December delivery surged Rs 1,034 or 1.12 per cent to Rs 93,079 per kilogram on the bourse.

On the other hand, COMEX gold rose 0.61 per cent to USD 2,701.20 per ounce in the international markets.

"The eased monetary policy of major Western central bankers and growing concerns about the escalating Middle East war have driven the recent uptrend in gold," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

Apart from weakness in the US dollar, it also lent support for precious metals, Gandhi added.

According to Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, COMEX gold remains steady near its record highs as traders await US Federal Reserve Chair Jerome Powell's address, scheduled to air later on Thursday at the 10th annual US Treasury Market Conference.

In the Asian trading hours, silver also traded 2.63 per cent higher at USD 32.86 per ounce.

Traders will also await the upcoming GDP data, along with the Core Personal Consumption Expenditures (PCE) Price Index on Friday, which will be key drivers for market direction, Jateen Trivedi, VP Research Analyst of Commodity and Currency, LKP Securities, said.