Gold records new highs on global trend, silver tumbles

Mumbai, Aug 6: Gold prices soared to a new high at the domestic bullion market on Aug 5 amid all-round bullishness, as investors and traders resorted to hectic buying.

On the other hand, silver came crashing under the global commodity sell-off and witnessed a massive speculative unwinding.

"The yellow metal turned into a safe investment bet due to ongoing concerns over other high-return assets as they are getting riskier day by day over turmoil in global markets," traders said.

Standard gold (99.5 purity) shot up by Rs 145 per 10 grams to end at Rs 24,170 from Thursday''s close of Rs 24,025.

Pure gold (99.9 purity) also spurted by Rs 135 per 10 grams to conclude at Rs 24,280 from Rs 24,145 previously.

However, silver ready (.999 fineness) tanked by a hefty Rs 2,240 per kg to finish at Rs 59,400 from yesterday''s close of Rs 61,640.

In London, gold witnessed a smart pullback from its initial fall after investors sold to cover losses in other assets. But its safe haven bet tag helped it rebound smartly.

Spot gold was bid at USD 1,666.70 an ounce in early trade and silver was bid at USD 39.28 an ounce.

PTI