Gold price peaks to Rs16,900 in India bullion market

MUMBAI (Commodity Online): Gold prices in India continue to peak. On Satruday, gold prices spiked to a new high of Rs 16,900 per 10 gram in the bullion market. Gold dealers said strong marriage season demand amid firmimg global trends are driving gold prices in India.

Gold gained Rs 75 to close at Rs 16,900 per 10 gram, a level never seen before. The precious metal in the US markets scaled a new high of 1,099 dollar an ounce.

Marketmen said fresh buying by stockists and jewellery fabricators to meet the demand during the marriage season and strong global cues led gold to touch an all-time high level.

They said the precious metal, which has been on a record setting spree since last few trading sessions, also influenced by the Reserve Bank of India's move to buy 200 tonnes of gold from the IMF, raising speculation that more countries would follow suit.