Gold recorded a rise of Rs 405 to touch Rs 12,865 per 10 gm in Mumbai. The price of yellow metal breached the psychological level of Rs 13,000-mark in Kolkata after a gap of 10 days, while it was just of short of Rs 20 from the Rs 13k in Delhi.

Prices of gold have gone up by more than Rs 1,500 since January 11, 2008, when it closed at Rs 11,355 per 10 gm in Mumbai bullion market. Gold prices firmed up in the global market due to the rise in oil prices and weakness of the U.S. Dollar against the Euro.

Spot gold was quoted at $822.10/824.10 an ounce, up from 809.90 an ounce in New York on Wednesday, when the precious metals climbed four per cent on the rising oil prices and dollar weakness.

Traders said the high prices have cut demand for gold jewellery drastically. “Now, we are receiving more sellers than buyers because consumers prefer to cash in at the current level,” said Prakash Jain of Jugraj Kantilal and Co, a leading bullion merchant in Zaveri Bazar.

Spot silver also rose to $10.40/10.48 an ounce from $10.21 an ounce.