Buoyed by a strong rally overseas, gold prices touched a new high of Rs 31,300 per 10 grams at the bullion market here today.

Gold prices rose Rs 185, registering gains for the sixth day in a row, while silver added Rs 950 to Rs 57,800 per kg on increased buying.

Silver coins also spurted by Rs 2,000 to Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces on strong demand.

Traders said gold’s rally in the global markets, where it recorded biggest weekly gain since January, was amid speculation that the Federal Reserve will take additional steps to spur the economy.

This in turn boosted the metal’s demand as an inflation hedge.

In New York, the yellow metal rose $2.10 to $1,674.90 an ounce, posting its biggest weekly gain since January 27. Silver also rose 0.5 per cent to $30.70 an ounce.

Buying by retail customers for the coming marriage season and investors also supported the uptrend in precious metals, traders said.

On the domestic front, gold of 99.9 and 99.5 per cent purity added Rs 185 to touch record levels of Rs 31,300 and Rs 31,100 per 10 grams, respectively. The metal has gained Rs 675 in the last five sessions.

Sovereign held steady at Rs 24,700 per piece of eight grams.

Silver ready spurted by Rs 950 to Rs 57,800 per kg and weekly based delivery by Rs 720 to Rs 57,200 per kg.

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