Gold prices surged to a fresh peak at Rs15,800 per 10 gm in Delhi today on the back of a firming up in global bullion markets amidst speculation of an extended recession.
In Kolkata, the yellow metal opened at a record high of Rs15,925 per 10 gm. In Mumbai, gold futures trading touched a new high by rising 0.88 per cent to Rs15,712 per 10 gm on the Multi Commodity Exchange of India (MCX). A similar firming trend was also seen in other regional bullion markets in the country.
Gold's recorded gains of Rs50 a day has also been aided by drop in the equity and forex markets, after poor economic data from Russia and Japan raised concerns of global recession.
While physical buying for the current marriage season declined substantially, investors had little option other than gold to invest in.
The World Gold Council (WGC) expect gold buying to pick up when prices drop.
"The combination of gold's safe heaven appeal and extreme uncertainty surrounding other asset classes should see consumers continue to take advantage of any dips in the price - the investment motive to buy gold in the region remains strong," WGC said in its latest report on 'Gold Demand Trends'.
Fewer wedding days in the current quarter as compared to the same quarter in 2008, will also have negative impact on gold demand, the report said.
The high price of gold is also likely to trigger higher levels of scrap recycling, the report pointed out.