Gold zoomed by a whopping Rs 215 per ten gram and closed at a new closing high of Rs 9,945 on the bullion market in Mumbai on Friday due to frantic buying after metal's prices touched a 25-year high.
Silver, however lost early firmness on some late sell off but closed smartly higher than yesterday. Standard gold (99.5 purity) shot up by Rs 215 at Rs 9,945 and pure gold (99.9 purity) by Rs 205 at Rs 9,990.
In the global market, gold shot up by $6 per ounce to 25-year high of $682.50 per ounce as Iranian nuke dispute intensified and investors bought the yellow metal as a safe investment and a hedge against inflation, dealers said.
Oil prices would skyrocket if Iran stopped supply and any rise in crude prices could cause inflation, a dealer said.
"Iran is the fourth largest oil producer and any kind of disruption in oil supply from that country can push the crude prices steeply high which would increase inflation", he said.
Ready silver (.999 fineness), after a remarkably strong start at Rs 21,005, met with fresh profit-selling and dropped to end at Rs 20,900, still showing a gain of Rs 195 over the last close of Rs 20,705.
Earlier in the day, breaking all previous records, gold prices surged to a new peak at Rs 10,050 per ten gram on aggressive buying by stockists and jewellers, triggered by a firm international trend.
Gold shot up by Rs 185 at Rs 10,050 per ten gram, a level never seen before, on emergence of heavy buying influenced by reports of the metal rising past $680 in future trade in New York.