Gold prices zoomed to an all-time high of Rs 13,850 per 10 gram in the national capital on Wednesday as plunging stock markets and deepening global financial crisis spurred demand for the metal as a safe hedge.
The gold jumped by Rs 450 to Rs 13,850 per 10 gram. It had risen to Rs 13,650 on July 15.
Investors who burnt their fingers in the equities and commodities rushed toward the precious metal to hedge risks, pushing prices higher, marketmen said.
They said the rise in physical demand for marriage and festival season was another factor that served as a boost for gold.
Melting world stock markets placed the US stocks at a five-year low, while Japanese stocks plunged to suffer the most since October 1987. Indonesia and Russia halted trading after stocks hit the lower circuit set by the exchanges.
Battered financial markets received another jolt as the International Monetary Fund cut its forecast for global growth next year to 3 per cent from 3.7 per cent.
Traders said the gold became a safer investment option and more dear among small and big investors as the market witnessed more funds shifting from stock and forex to bullion market.
In London, gold rose $15.43 to $902.53 an ounce, exceeding 900 dollar for the first time this month, as a firming US currency made the dollar-denominated precious metal more costlier.