Gold prices rallied to an all-time high in early trade on the bullion market here today on persistent stockists buying on the back of higher global advices.

However, silver declined on lack of industrial demand at higher levels.

The sudden spurt in the yellow-metal was attributed to surge in demand from retailers and jewellers in view of ongoing marriage season, traders said.

Gold rose towards last month's record in Asian market today as the dollar slipped ahead of a US interest rate decision, and that the International Monetary Fund (IMF) had completed half of a planned gold sale.

The IMF said yesterday that it sold 200 metric tonnes of gold to the Reserve Bank of India for USD 6.8 billion.

Spot gold was quoted at USD 1,063.25 an ounce in the early trade, up USD 4.10 from New York national close.

In the domestic market, standard gold (99.5 purity) strengthened by Rs 150 per ten grams to open at a new peak of Rs 16,235 from yesterday's closing level of Rs 16,085.

Pure gold (99.9 purity) also hardened to resume at a historic high of Rs 16,325 as against Rs 16,165 previously.

However, silver ready (.999 fineness) eased to Rs 26,790 from Rs 26,820 previously.