MUMBAI (Commodity Online): Indians gave the biggest boost to gold this week with the demand rising in the country following the onset of wedding season across the country.
Breaking all previous records, gold prices zoomed past Rs 18,800 per 10 gm level on Thursday in New Delhi while Mumbai witnessed Rs 18,600 level.
This jump in India, which is the biggest consumer of the metal in the world, and the rise in demand have delivered the much needed push to the gold market globally.
In New Delhi, gold clocked 18,810 per 10 gm on frantic buying for the ongoing marriage season.
Buying activity gathered momentum as speculators indulged in squaring up their pending positions in futures trading ahead of settlement at this month's end.
A firming trend in overseas markets continued to support the precious metal in Delhi. The price of gold in global markets, which sets the trend in domestic markets, climbed for a third day as investors sought a haven from Europe's debt crisis.
Analysts said gold is again benefiting from safe haven flows as uncertainty and risk aversion across markets persist.
It is being feared that the implementation of $1 trillion rescue package to purchase Eurozone government bonds to contain the spread of debt crisis might create inflationary pressure in the region. This will lead to weakening of the euro.
Some experts said demand in India and China will continue to grow driven by jewellery demand, in spite of high local currency gold prices.
Gold futures on the COMEX Division of the New York Mercantile Exchange advanced for a third day on Wednesday, as slumping euro spurred fresh demand of gold as safe- haven. Silver and platinum both rallied.
The most active gold contract for June delivery rose $15.4, or 1.3 percent, to finish at $1,213.4.