Gold prices zoomed to set a new peak at Rs 9,950 per ten gram on the bullion market on Wednesday on hectic buying by stockists and jewellers, triggered by surging prices in the overseas markets.
The precious metal was in demand by speculators in line with the rising trend in the international markets, which normally set price band in domestic markets.
Gold futures rose to over 25-year high in overseas markets as mounting tension over Iran's nuclear programme lifted crude oil prices, boosting the precious metal's appeal as a hedge against inflation.
Gold for June delivery rose $9.40 to $676.80 an ounce in the New York Mercantile Exchange, highest since October 17, 1980.
Trading sentiment turned bullish with most of stockists and jewellery fabricators buying gold ahead of an expected further rise in the prices, traders said.
They said the bullion markets were more influenced by geopolitical reasons rather than Forex, which earlier dominated the dollar-priced metals.
Standard gold and ornaments shot up by Rs 240 each at Rs 9,950 and Rs 9,800 per ten gram, respectively. Sovereign also spurted by Rs 150 at Rs 7,750 per piece of eight gram, a level never seen before.
Buoyancy was noticed in silver as the ready stock was traded higher by Rs 250 at Rs 20,700 per kilo and weekly-based delivery by Rs 760 at Rs 20,960 per kilo on speculative support. As the silver prices gained, its coins were higher by Rs 300 at Rs 23,800 for buying and Rs 23,900 for selling of 100 pieces.