Gold prices on Thursday rallied by ₹940 to touch a lifetime high of ₹62,020 per 10 grams amid strong global trends, according to HDFC Securities.

The precious metal had settled at ₹61,080 per 10 grams in the previous trade.

Silver also zoomed ₹660 to ₹76,700 per kg.

Gold prices in the domestic market climbed to record high following overnight gains in the international market, Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

Gold prices traded up in Asian trading hours on Thursday as dollar and bond yields dropped after the US Fed signalled a pause in policy tightening from the next meeting after hiking the benchmark interest rate by 25 basis points, Gandhi said.

In the overseas market, both gold and silver were trading higher at $2,039.50 per ounce and $25.50 per ounce, respectively.

Gold prices in FY 23 has rallied by ₹8,000 in domestic market from ₹52,000 to ₹60,000, i.e., 15% returns beating all other asset classes, said Jateen Trivedi, VP Research Analyst at LKP Securities.

He said that going ahead gold  looks lucrative in terms of ROI from a safety perspective as inflation still remains high globally and interest cycle is yet to ease. This will also provide the push needed for Gold to run and give 10-15% return in coming FY24.

"Nifty has given flat to negative returns in this FY23, as the geopolitical tension in Russia & Ukraine escalation brought the Gold has been proven a perfect hedge in the Portfolio giving out strong returns.  The prices can easily touch 66000-68000 on base case performance before we reach the FY24 end next year. On the back of weak and uncertain performance in risky assets it is strongly advised to remain invested in Gold for further 10-15% returns on base case and 15-20% on bull case scenario.

Gold prices steadied on Thursday after accelerating to a near-record high as the U.S. Federal Reserve signalled its rate hiking run might finally have hit a pause, with elevated economic risks seen fuelling robust demand for safe-haven bullion.

Spot gold ticked up 0.2% to $2,042.43 per ounce by 1145 GMT after climbing earlier to $2,072.19, just shy of a record high of $2,072.49 touched in 2020.

U.S. gold futures rose 0.7% to $2,051.40.