Mumbai: Gold futures rose to a new high early on Thursday on fresh US inflationary concerns and analysts said the metal could set new records during the day.
“The latest inflation numbers have restored the confidence in gold,” said T. Gnanasekar, director of Commtrendz Research.
“Gold is looking at making new highs,” he added.
The April gold contract on the Multi Commodity Exchange of India Ltd surged past Rs12,000 per 10 grams for the first time, touching Rs12,042 in early trade.
The US inflation figures for January issued late on Wednesday pointed to persistent inflation pressures in the world’s biggest economy that also guides gold.
Higher inflation boosts gold as it is also used as a currency that can perform the role of an inflation buster.
Another analyst, Harish Galipelli, head of research at Karvy Comtrade Ltd, said the April contract on MCX is likely to trade within Rs11,980 and Rs12,100.
“Crude oil has breached $100 a barrel, so that can lead to a continued rally in gold,” Galipelli said.
Crude oil surged to a record over $101 a barrel on a gush of hedge funds inflows and OPEC supply concerns.
Gold usually moves in tandem with crude oil as the latter is a prominent inflation indicator while the yellow metal is a good hedge against it.