Gold surges to all-time high at Rs 19,470 on festive demand

Silver prices too followed the general bullish trend and jumped by Rs 200 to Rs 31,775 per kg, the highest level for this year, on increased offtake by industrial units and coins makers.
The gold prices surpassed all previous records as they spurted by Rs 145 to Rs 19,470 per ten grams, on increased buying by jewellers and retailers to accomodate the seasonal demand for upcoming festival and marriage season beginning next month.

The precious metals, silver and gold, normally witness a pick up in demand in the last quarter starting with Rakshabandhan and last till Dhanteras - the single biggest gold buying day in Hindu mythology.

The sentiment further bolstered after gold traded near its record level in overseas markets, as a drop in equities increased the precious metal's appeal as an alternate investment.The investors also bought Gold to seek protection against financial turmoil in Europe and the prospect of slowing economic growth. The gold in London rose to an all-time high of 1,265.30 dollar an ounce on June 21.

The gold in overseas markets, which normally sets a price trend for the domestic markets here, gained 0.3 per cent to 1,259.45 dollar an ounce. Silver gained 0.6 per cent to trade above 20 dollar an ounce, its highest level since March 2008.

In domestic markets, the gold of 99.5 and 99.5 per cent purity jumped up by Rs 145 each to Rs 19,470 and Rs 19,370 per ten grams, respectively. Sovereign rose by Rs 100 to to an all-time high of Rs 15,100 per piece of eight grams.

Silver ready surged by Rs 200 to year's highest level of Rs 31,775 per kg and weekly-based delivery by Rs 110 to Rs 31,520 per kg.Silver coins followed suit and gained Rs 100 to Rs 35,200 for buying and Rs 35,300 for selling of 100 pieces