Gold prices on Wednesday surged Rs 1,113 to hit an all-time high of Rs 37,920 per 10 gram in the national capital on sustained buying from jewellers amid strong trend overseas as fresh trade tensions between the US and China prompted investors to move towards gold as safe haven asset.
Silver also followed the suit and rose by Rs 650 to Rs 43,670 per kg on increased offtake by industrial units and coin makers.
Analysts said the rise in local demand, coupled with robust global trend, mainly led to the surge in gold prices.
"Bullion prices traded higher with international spot gold prices rallying to USD 1,490 on Wednesday. Gold prices witnessed safe haven buying due to global economic uncertainty on trade war escalation and weak investment sentiment," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
"The trade war intensified with US labelling China as currency manipulator, while China ordered to suspend all agriculture import from US," he said.
The worsening Sino-US trade talks may lead to further rate cuts from US Fed to support lingering economy, he added.
Globally, gold was trading up at USD 1,487.20 an ounce in New York, while silver was quoting at USD 16.81 an ounce.
"Gold price of Rs 37,920 per 10 gram is the highest in the domestic market till date," Surendra Jain, vice-president of the All India Sarafa Association said.
Gold prices have been surging for the last few days and had hit Rs 36,970 mark on Monday.
In the national capital, gold of 99.9 per cent purity surged Rs 1,113 to Rs 37,920, while that of 99.5 per cent climbed Rs 1,115 to Rs 37,750 per 10 gram on Wednesday.
Sovereign gold also rose by Rs 200 to Rs 27,800 per eight gram.
Silver ready rose Rs 650 to 43,670 per kg, while weekly-based delivery advanced Rs 694 to Rs 42,985 per kg.
Silver coins were in good demand and traded higher by Rs 1,000 at Rs 86,000 for buying and Rs 87,000 for selling of 100 pieces.