Gold prices in Calcutta are inching closer to the milestone of Rs 70,000 per 10 grams. On Monday, the price of the yellow metal in the city hit a high of Rs 69,450, against Rs 68,750 on Saturday.

In Delhi, gold prices surged by Rs 1,070 to hit an all-time high of Rs 68,420 per 10 grams amid a rally in the precious metal in global markets.

Globally, Comex Gold prices climbed as much as $2,286.40 per ounce on Monday against an opening price of $2,259.20 per ounce. Gold prices touched record levels as the US Federal Reserve is getting closer to cutting interest rates which is adding momentum to a rise in bullion prices.

“Additionally, robust Chinese demand is also feeding a rise in the prices of the precious metal,” Dilip Parmar, research analyst at HDFC Securities, said.

Meanwhile, in futures trade on the MCX, the June contract of gold climbed Rs 68,926 per 10 grams on Monday before a correction to Rs 68,200 later in the day.

“Gold rises to yet a record high as better than expected US growth data and sticky inflation above 2.5 per cent, which raises concerns around the expected rate cut at the Fed’s June meeting.”

“The dollar index is seen trading steady as many markets are closed today for Easter holiday,” Pranav Mer, vice-president, EBG-commodity & currency research at JM Financial Services Ltd, said.

The World Gold Council in a report released on Monday said that gold has long been considered a hedge against inflation and since 1971 has outpaced the US and world consumer price index.

“Historically, major currencies were pegged to gold. That changed with the unravelling of the US gold standard in 1971 and the eventual collapse of the Bretton Woods system. Since then, with a few exceptions, gold has significantly outperformed all major currencies and commodities as a means of exchange,” the report said.