Gold breaches Rs 1.3 lakh/10 g, silver hits Rs 1.85 lakh/kg amid festive rush

New Delhi: Gold prices on Tuesday surged by Rs 2,850 to breach the Rs 1.3 lakh per 10 gram-mark for the first time in the national capital, driven by heavy festive buying by retailers and jewellers ahead of 'Dhanteras'.

According to the All India Sarafa Association, the precious metal of 99.9 per cent purity jumped Rs 2,850 to a record of Rs 1,30,800 per 10 grams (inclusive of all taxes) against the previous close of Rs 1,27,950.

Gold of 99.5 per cent purity also advanced by Rs 2,850 to hit a new record of Rs 1,30,200 per 10 grams (inclusive of all taxes), from the previous close of Rs 1,27,350 per 10 grams.

Silver also surged by Rs 6,000 to hit a lifetime high of Rs 1,85,000 per kilogram (inclusive of all taxes), marking its fifth consecutive day of gains.

The white metal had settled at Rs 1,79,000 per kg in the previous market session.

Traders attributed the sharp rise in bullion prices to sustained demand from jewellers and retailers in the run-up to the festive and wedding season, along with a weaker rupee that slipped 12 paise to revisit its all-time low of 88.80 against the US dollar on Tuesday.

In the international market, spot gold retreated from record highs but remained elevated, trading 0.72 per cent higher at USD 4,140.34 per ounce after touching an all-time high of USD 4,179.71 per ounce earlier in the day.

Spot silver also pulled back after hitting a lifetime high of USD 53.54 per ounce and was last quoting 1.92 per cent lower at USD 51.36 per ounce.