​​​​​​​Gold prices hit lifetime high of Rs 41,730 per 10 gm, zoom Rs 720

On the Multi Commodity Exchange, gold contracts for February traded higher by Rs 916, or 2.28 per cent, at Rs 41,096 per 10 gram with a business turnover of 5,559 lots.

New Delhi: Gold prices in the national capital hit an all-time high level on Monday and zoomed Rs 720 to Rs 41,730 per 10 gram following a pick-up in safe-haven demand for the metal amid weak equities and bullish global trends, according to HDFC Securities.

Silver also witnessed increased buying as it surged Rs 1,105 to Rs 49,430 per kg from Rs 48,325 per kg in the previous trade.

Gold had in the previous trade closed at Rs 41,010 per 10 gram.

"Safe-haven demand continued in the precious metal with word of war between the US and Iran. Along with a weaker rupee, rise in international gold prices supported domestic gold prices to trade at life-time high level," Devarsh Vakil, Head (PCG-Advisory), HDFC Securities, said.

In the global market, gold traded with gains at USD 1,575 per ounce and, likewise, silver also quoted higher at USD 18.34 per ounce.

International gold prices at COMEX climbed as much as 2.3 per cent to USD 1,588.13 an ounce, the highest level since April 2013, and traded at USD 1,575 an ounce. Along with the other Asian currencies, the rupee traded with a loss of 25 paise amid higher crude oil prices.

In the morning trade, the rupee depreciated 31 paise to 72.11 weighed by the spike in crude oil prices, amid rising concerns over US-Iran tensions.

The domestic market witnessed intense sell-off in line with global stocks after US President Donald Trump warned Iran of major retaliation if Tehran carries out any attack against

America to avenge the killing of top military commander Qassem Soleimani.

Volatility in gold to continue on US-Iran conflict: WGC

As gold prices touched Rs 42,000 for 10 grams on Monday in the wake of the US-Iran conflict, World Gold Council said the volatility in the yellow metal prices will continue and consumer demand will face a headwind because of this.

"There will be volatility (in Gold prices) with an upward bias as we see. Volatility is not good for consumer demand. When the gold price moves upward one way, jewellery industry bears the brunt of the consumers indecision," Somasundaram PR, MD, India, World Gold Council, told IANS in an exclusive interview.

He said gold prices went up on Monday by 1.62 per cent on global rates, and Indian rates have touched Rs 41,096 on MCX.