Record High: Gold continues to gain for the seventh straight session; silver too hits a fresh peak

Gold prices shot up by Rs 637 to touch its all-time high of Rs 71,080 for 10 grams, while silver surged Rs 1,381 to scale a new peak of Rs 82,109 a kg

Gold prices hit a record high for a seventh straight session on April 8, driven by central bank purchases and geopolitical concerns as the bullion's appeal was unabated by positive economic statistics.

Spot gold hit a record high of $2,353.79 before firming 0.3 percent at $2,336.39 in the session. US gold futures settled 0.2 percent higher at $2,351.

At home, Gold shot up by Rs 637 to touch its all-time high of Rs 71,080 per 10 grams, while silver surged Rs 1,381 to scale a new peak of Rs 82,109 per kg.

Gold futures for June delivery were trading higher by Rs 16, or 0.02 percent, on the Multi Commodity Exchange (MCX) in the futures market at Rs 70,652 for 10 grams. Silver futures for May delivery were trading at Rs 81,698 a kg, an increase of Rs 835.

According to a Reuters report, the Central Bank of China added 160,000 troy ounces of gold to its holdings in March. This year, Turkey, India, Kazakhstan, and a few nations in Eastern Europe have also been purchasing the precious metal.

"The market is pricing rate cuts by June despite strong economic data. But, if we continue to see strong data, which indicates that the Federal Reserve is in no hurry to cut rates, then gold will not be able to sustain the gains," said Bart Melek, head of commodity strategies at TD Securities.

"Central bank buying and geopolitical tensions are other supportive elements," Melek added.

According to CME Group statistics, traders are pricing in a 52 percent possibility of the first 25 basis point drop in US interest rates in June. Data released on April 4, however, revealed that US employment growth in March exceeded forecasts, casting doubt on the timing of rate decreases. Lower interest rates reduce the opportunity cost of holding bullion.

Even though US Treasury rates rose following the strong US payroll statistics in March that changed expectations for the Federal Reserve to turn its focus to rate reduction in the second half of this year, analysts say the yellow metal's surge has not slowed.

Praveen Singh, Associate VP, of Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, said, the US payroll data was quite encouraging and was driven mostly by part-time jobs.

COMEX gold speculators raised their net long positions by 20,493 contracts to 178,213 in the week ended April 2, data showed on Friday.

Spot silver was up 1 percent at $27.76, its highest in nearly three years.

India's silver imports hit a record high in February as lower duties encouraged large purchases from the United Arab Emirates, officials told Reuters.

Platinum rose 3.9 percent to $963.60 and palladium firmed 3.8 percent at $1,040.82.

The anticipation of platinum group metals starting to catch up with gold is driving prices higher, said Daniel Pavilonis, senior market strategist at RJO Futures. "The precious metals sector as a whole is starting to benefit from gold being so expensive now," he said.