MUMBAI: Standard gold prices crossed Rs 16,700-level for the first time in the history on the bullion market in the early trade on hectic How to invest in gold Few tips to buy gold Is gold fund for you? Gold: A safe option stockists buying triggered by rise in the global market. Sharp rise in the global markets mainly boosted gold prices in domestic market, a dealer said. Standard gold (99.5 purity) firmed up by Rs 45 per ten grams to resume at Rs 16,710 as against the last weekend's level of Rs 16,665. Pure gold (99.9 purity) also shot up to Rs 16,790 from last weekend's level of Rs 16,745. Silver ready (.999 fineness) jumped by Rs 175 per kilo to Rs 27,880 from Rs 27,705 previously. Cash gold hit a high of $1,104.80 an ounce, surpassing Friday's lifetime high of $1,100.90, with a jump in oil prices and overall bullish sentiment due to India's recent gold buying spree. Gold has gained more than 25 per cent in 2009, driven by persistent weakness in the US currency that has lost more than 6 per cent versus the euro to date this year. Purchases from India kept premiums for gold bars steady in Singapore at 40 to 60 U.S. cents to spot London levels, while fears about further gains in prices spurred buying from the electronics sector in Hong Kong. Dealers noted sales from Indonesia but the limited amount of scrap being returned to the physical market despite record prices suggested that holders expected more gains. "I see purchases from India. Athough it's not really a buying spree, I would say it's quite good," said a dealer in Singapore. "If you calculate the price in rupees, it's still OK for them," he said. In theory, a weak dollar lifts gold's appeal as an alternative investment and makes dollar-priced bullion cheaper for holders of other currencies. Gold bars were offered at a premium of 30 to 40 cents to spot London prices in Hong Kong, barely changed from last week.

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