New Delhi: Gold prices rose by Rs 900 to a new record high of Rs 77,850 per 10 gram in the national capital on Wednesday amid a rise in prices of the precious metal in the global market, while silver rose by Rs 3,000 to Rs 93,000 per kg due to fresh offtake by industrial units and coin makers.

India Bullion and Jewelers Association (IBJA) National Secretary Surendra Mehta said that gold prices are expected to cross $3,200 per ounce in the international markets in the near future. Pranav Mer, Vice President, BlinkX and JM Financial, said, "Weak dollar and expectations of further reduction in interest rates by central banks around the world, demand for safe investment and flow of ETF funds are supporting the prices."

According to traders, persistent buying by jewellers and firm trends in international markets are among the factors that fuelled the rise in gold prices.

Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Ltd, said, "Expectations of further reduction in US interest rates remain. Also, geopolitical tensions are increasing in the Middle East. Due to this, gold prices reached record highs on Comex as well as on the domestic front."

According to Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities, US data on Tuesday showed that US consumer confidence unexpectedly fell the most in three years in September. This has raised concerns about the outlook for the broader economy.

Gandhi said that after the data release, the US dollar declined, as did the US Treasury yield. This also led to a rise in gold prices.