Gold sets new record at Rs 31,980; silver down by Rs 200

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Continuing its upward swing, gold on Wednesday surged to a new all-time high of Rs 31,980 per 10 grams in the national capital on sustained buying by stockists amid a firming global trend.

The precious metal, which has been setting new records for the last two weeks, spurted by Rs 130 to Rs 31,980 per 10 grams on brisk buying by stockists for the upcoming marriage season and some investors shifting their funds to bullion from melting equity markets.

Gold prices in the domestic market were also supported by a firming global trend as traders await outcome of European Central Bank meeting to counter deepening eurozone debt crisis, raising demand for the metal as a safe haven.

In New York last night, gold rose by USD 3.60 to USD 1,696.20 an ounce. However, silver met with resistance at prevailing higher levels and lost Rs 200 to Rs 60,000 per kg.

On the domestic front, gold of 99.9 and 99.5 per cent purity advanced by Rs 130 each to set a new peak level of Rs 31,980 and Rs 31,780 per 10 grams, respectively.

The metal had gained 240 on Tuesday. Sovereigns followed suit and climbed by Rs 100 to Rs 25,050 per piece of eight grams.

Silver ready lacked necessary follow up support and lost Rs 200 to Rs 60,000 per kg while weekly-based delivery added Rs 170 to Rs 61,950 per kg.

Silver coins spurted by Rs 1,000 to Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.

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