Continuing its record settingspree, gold today surged by Rs 100 and touched a new high ofRs 17,500 per 10 gram in the bullion market here on heavybuying by jewellery makers amid firming global trend.
Silver coins also rose to an all-time high of Rs 34,200for buying and Rs 34,300 for selling of 100 pieces, recordinga significant rise of Rs 200.
Analysts said that gold prices might touch Rs18,000-level here once physical buying starts in the overseasmarket ahead of the Christmas season.
Gold, which moves in tandem with the international trend,got support from firming global cues rather than physicalbuying for the current marriage season, said Mahesh Verma ofOM Sons jewellers.
The yellow metal in the overseas markets rose to 1,154dollar an ounce.
Some of the investor funds were seen shifting fromvolatile equities to bullion, boosting gold prices.
The precious metal commenced its upward journey eversince the Reserve Bank of India bought 200 tons of gold fromthe International Monetary Fund, raising fears that some morecentral banks may follow suit.
The major transaction took place at a time when themarket was passing through a hectic time of marriage seasonbuying. Besides, a firming global trend due to dollar'sweakeness overseas boosted demand for the metal as analternate investment.
