India's benchmark October gold contract hit a record high of 30,699 rupees per 10 grams on Thursday, tracking gains in the overseas markets, though a firm rupee capped the upside.
International spot gold prices rose to their highest levels in more than three months, shaking off months of lethargy after minutes from the latest U.S. Federal Reserve meeting fuelled hopes for the swift launch of more bond buying.
Economic stimulus is expected to raise the inflation outlook, benefiting gold, which is seen as a hedge against rising prices, while the prospects of economic recovery boosted sentiment across riskier assets.
Economic stimulus is expected to raise the inflation outlook, benefiting gold, which is seen as a hedge against rising prices, while the prospects of economic recovery boosted sentiment across riskier assets.
The Fed is likely to deliver another round of monetary stimulus "fairly soon" unless the economy improves considerably,minutes from the central bank latest meeting suggested.
The Fed's tone is totally different in the minutes from previous comments,and that helped gold break from the previous range and move into a higher price r range ahead of the peak consumption season.
Reuters market analyst Wang Tao said charts indicated spotgold could retrace to $1,647, after testing the resistance at $1,664.Short-covering and the strength in the euro also helped demand for gold, keeping it on course for its seventh session of gains.Spot silver also rallied more than 2 percent to $30.51, its highest since early May.
The rupee rose to an over one-week high on Thursday.
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