Gold prices breached the $1,500-mark for the first time as increasing worries over financial markets and prospects of a continued economic downturn in the US drove investors to safe-haven commodities.
Spot gold rose $13.31 to a high of $1,505.21 an ounce, against Tuesday's closing price of $1,493 an ounce in New York. Gold futures for June delivery on the New York Mercantile Exchange were up $10.60 an ounce at $1,505.70.
Gold prices on the local market in Delhi rose by Rs115 to Rs22,060 per 10 gm on the strength of overseas markets. The spike was also supported by active stockist buying.
Gold 99.5 per cent purity also shot up by Rs115 to a new high of Rs21,940 per 10 gm.
Sovereigns rose Rs100 to a new peak of Rs18,000 per piece of eight gm.
Retail buying by customers and jewellers for the coming marriage season further fuelled the uptrend.