Gold hits record high of Rs 19,211

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MUMBAI: Gold futures struck a new high of Rs 19,211 per 10 grams on Tuesday, tracking strong overseas markets, breaching the earlier peak of Rs 19,198 struck on June 8. The contract was trading at Rs 19,188 at 6:15 p.m.
Silver erased early losses to rise to a fresh 2-1/2 year high at $20.00 an ounce on Tuesday, as investors returning from a US holiday bought precious metals amid concerns over the health for European banks.
Indian silver futures may extend gains for a second consecutive month and hit a new record high following a firm overseas gold market, coupled with rising festive demand, analysts said. Silver futures traded 0.26 percent higher at Rs 31,544 per kg at 5:41 p.m., falling from a record high of Rs 31,507 struck earlier in the day.
The contract had gained 7.9 percent in the previous month. “The outlook is positive in silver and would follow the foot-steps of gold,” said Pranav Mer, senior analyst with Mangal Keshav Commodities.
Gold has been on an upswing as investors sought to hedge to protect their wealth from economic uncertainties in the US, euro zone and elsewhere.
Buying could be done in silver at 30,300 for a target of Rs 32,500, said Mer. The white metal is usually influenced by gold as investors tend to treat all precious metals as one class.
But the metal also takes a cue from base metals, particularly copper, as it is partly an industrial metal used in photography and electronics. Festive demand in India could also support prices, analysts and traders said.
Demand in India, the world’s largest consumer, rises during the festive season, beginning with Raksha Bandhan in August and lasting through November with Dhanteras — the single-biggest gold buying day.