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First time ever gold crosses Rs 25,000-mark

Gold prices breached the crucial Rs 25,000-level for the first time ever in history, tracking strong trends in global markets where financial uncertainty increased the metal's appeal as a safe investment haven.

"If the global trend remains firm, domestic gold prices may touch the Rs 27,000-mark by Diwali," Bombay Bullion Association President Suresh Hundia told PTI.

"Gold is a safe investment haven for investors at this point of time, when global economy, especially the US and Europe, is facing a debt crisis, D K Aggarwal, Chairman and Managing Director, SMC Comtrade said.

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First time ever gold crosses Rs 25,000-mark

Moving in tandem with global prices, gold prices rose by Rs 160 to Rs 25,295 per 10 grams in Kolkata; it went up by Rs 472 to Rs 25,291 in Chennai.

In the national capital, it spurted by Rs 460 to hit a new high of Rs 25,230. Similarly in Mumbai, it gained Rs 395 to Rs 24,930 per 10 grams.

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First time ever gold crosses Rs 25,000-mark

In addition, some local buying ahead of marriage season also boosted the sentiment, they added.

In Delhi, the metal has gained Rs 1540 or 6.5 per cent since August 2.

Similarly in the futures market, gold for April delivery rose by Rs 536 to Rs 25,978 per 10 grams, at the Multi Commodity Exchange.

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First time ever gold crosses Rs 25,000-mark

Sovereigns followed suit and shot up by Rs 200 to a new peak of Rs 19,800 per piece of eight grams.

Gold prices in the overseas market rose by $44.40 to $1,707.80 an ounce in Singapore due to downgrading of the US' credit rating by S&P and this led investors to shift their funds from equities and dollar to gold.

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First time ever gold crosses Rs 25,000-mark

"Gold prices have breached the Rs 25,000-level. This will definitely affect the demand in volumes terms during the festive season," Hundia said.

He also said that gold import could also decline by 10-20 per cent if the high price trend continues.

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First time ever gold crosses Rs 25,000-mark

Silver ready spurted by Rs 1,300 to Rs 59,900 per kg on increased offtake by industrial units and coin makers and weekly-based delivery gained Rs 1,605 to Rs 59,980 per kg.

Silver coins flared up to Rs 66,000 for buying and Rs 67,000 for selling of 100 pieces from previous level of Rs 64,000 and Rs 64,500, respectively.