Gold scales new peak of Rs 22,520

Gold scaled a new peak by adding Rs 50 to a record price of Rs 22,520 per 10 grams in New Delhi on Friday on rising seasonal demand amid a firming global trend.

The yellow metal remained in demand ahead of the upcoming 'Akshya Tritya' festival, considered to be an auspicious day for purchasing gold and the beginning of marriage season.

The trading sentiment was further bolstered as gold recorded its biggest monthly advance since November, 2009, in the Asian region as a weakened dollar and accelerating inflation prompted investors to buy precious metals as a store of value.

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Gold in global markets, which normally sets a price trend on the domestic front, touched a record $1,540.85 an ounce as the dollar fell to its lowest level since December, 2009, against the Euro after the US Fed kept borrowing costs at a record low.

Shifting of funds from melting equity markets to bullion also influenced the trading sentiment.

On the domestic front, gold of 99.9 per cent and 99.5 per cent purity remained in demand and advanced by Rs 50 to Rs 22,520 and Rs 22,400 per ten grams, respectively, levels never seen before.

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Sovereigns followed suit and shot up by Rs 100 to a record level of Rs 18,400 per piece of eight grams.

On the other hand, silver ready prices held steady at Rs 72,000 per kg, while weekly-based delivery strengthened by Rs 475 to Rs 71,170 per kg amid the general firming trend in precious metals.

Silver coins remained stable at Rs 77,500 for buying and Rs 78,500 for selling of 100 pieces.