Gold prices rise for the fourth day in row, hits a record Rs31,035/10 gm

Gold prices rose for the fourth day in a row today to touch a record high of Rs31,035 per 10 grams in the bullion market as stockists and investors bought aggressively on overseas cues.

Gold gained Rs290 to surge past the previous record of Rs30,750 per 10 gm set on 19 June even as the precious metal added Rs305 in the last three trading days.

Silver also rose Rs1,000 to Rs57,000 per kg on strong global cues, while silver coins shot up Rs3,000 to Rs72,000 for buying and Rs73,000 for selling of 100 pieces.

Benchmark gold futures were up 1.26 per cent today, hitting a new peak, turning away physical traders looking to stock yellow metal in the middle of the festive season.

Gold for October delivery on the Multi Commodity Exchange (MCX) hit its peak at Rs30,699 per 10 gm, before trading 1.09 per cent higher at Rs30,646, backed by overseas leads. A stronger rupee, however, kept the upside limited.

Globally, gold rose to its highest levels in over three months, after staying sluggish for months, with the release of the minutes from the latest US Federal Reserve meeting sparking hopes of additional bond buying.

The festival season currently under way in India would last till November. India is the world's biggest consumer where gold sales are expected to be down 40 per cent in the season to 200 tonnes.

Gold imports are already down to half so far this year and the drought conditions now could cause further dent in rural demand could be expected. About 60 per cent of the country's demand comes from rural areas, which depend on monsoon rains for yields and income.

In Singapore, gold was up for the seventh day in a row, rising 0.6 per cent to $1,665.31 an ounce - the highest since 2 May - with silver too gaining 2.5 per cent at $30.57 an ounce.