Gold surges Rs 400, exceeds Rs 74k; Silver reaches new high

Gold and silver prices soared to fresh record high levels on Friday with the precious metal breaching Rs 74,000 per 10 grams mark here on bullish global trends.

According to HDFC Securities, gold price jumped Rs 400 to hit its lifetime high of Rs 74,100 per 10 grams in Delhi. It had closed at Rs 73,700 per 10 grams on Thursday.

Similarly, silver prices rose by Rs 100 to hit a new peak of Rs 86,600 per kg.

"Spot gold prices (24 carats) in the Delhi markets are trading at a record high of Rs 74,100 per 10 grams, up by Rs 400 amid a positive trend in the overseas markets," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

In the overseas markets, spot gold at Comex was trading at USD 2,390 per ounce, up by USD 15 from the previous close.

Gold in the global market surged near a record high in the Asian trading hours on Friday, following reports that Israel had struck targets on Iranian soil, days after Iran had launched an attack on Israel in retaliation for a raid on its consulate in Syria.

This has increased the possibility of a larger regional conflict that would support higher gold prices.

Additionally, silver was quoted higher at USD 28.29 per ounce. In the previous close, it had finished at USD 28.25 per ounce.

According to market analysts, a string of reports, including US inflation data which has remained hotter than forecast this year, have pushed the top US Federal Reserve officials to say recently they could hold interest rates high for a while.

That's a letdown after the Fed earlier had signalled three cuts to interest rates could be possible this year. But Fed officials have been adamant they want to be sure inflation is heading down toward their 2 per cent target before lowering the Fed's main interest rate from its highest level since 2001.