Rising crude oil prices touching fresh record levels and plunging dollar boosted the gold prices on Thursday by Rs 220 to set a new peak at Rs 13,100 per 10 gram in the bullion market in New Delhi.
Silver also traded at its ever highest level of Rs 25,000 per kg and its coins at Rs 27,000 per 100 pieces.
Trading activity gathered momentum after the crude oil rose to record $110 a barrel and the dollar falling to its lowest level against the leading currencies, raised the concern of a further rise in inflation and boosted the demand for gold as a safe haven.
Marketmen said fresh inflow of funds from melting stock markets to bullion was an additional factor for the surging gold and silver prices. They said the precious metal rising to record high levels in global markets also influenced trading sentiment to some extent.
Gold rose for a third day in London to within 0.5 per cent of a record on speculation that credit-market turmoil will spur demand for the metal as a haven from declines in stocks and the dollar. Gold rose $6.71 to $989.64 an ounce. The record was $992.05 on March 6.
Gold has climbed 19 per cent this year as the dollar fell and world equity markets headed for their worst start since 2001.
On the domestic front, standard gold and ornaments spurted by Rs 220 each to Rs 13,100 and Rs 12,950 per 10 gram respectively. Sovereign also set a record to Rs 10,075 per piece of eight gram.
Silver ready spurted by Rs 100 to Rs 25,000 per kg and weekly-based delivery by Rs 1,040 to Rs 26,240 per kg. Silver coins also traded at record high level of Rs 26,900 for buying and Rs 27,000 for selling of 100 pieces.