Gold touches new high of Rs 28,750 on firm global cues

The precious metal spurted Rs 470 to Rs 28,750, a level last seen on August 22 when it hit Rs 28,540 per 10 grams. Dealers attributed the rise to gold's hitting a new peak in global markets.

In the futures markets of India and China, world's two largest consumers of gold, it touched all-time highs, which further supported the uptrend, they added. Gold gained 1.1 per cent to record USD 1,921.15 an ounce in global markets on speculation that Europe's debt crisis will worsen and dampen economic growth, prodding investors to opt for the precious metal as an alternative investment.

Silver, however, met with some resistance at existing higher levels. It declined Rs 400 to Rs 65,100 per kg. Moreover, pick up in local buying for the upcoming marriage season also supported the upsurge in gold.

On the domestic front, gold of 99.9 and 99.5 per cent purity surged by Rs 470 and Rs 460 to Rs 28,750 and Rs 28,600 per 10 grams, respectively, the levels never seen before.

Sovereign followed suit and shot up by Rs 100 to fresh peak of Rs 22,800 per piece of eight grams. On the other hand, silver ready fell by Rs 400 to Rs 65,100 per kg and weekly-based delivery by Rs 430 to Rs 65,985 per kg as stockists shifted to gold for quick gains.

However, silver coins ended flat at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.