Gold surges 6-week high on festival buying, firm global cues

Aug 16, 2010 |

New Delhi

Gold prices surged to a six-week high in the national capital on Monday on persistent buying by stockists and jewellers to meet the festive demand amid a firming global trend.

The precious metal, which had gained Rs 430 in last four trading sessions, added another Rs 75 to trade at Rs 18,870 per 10 grams, a level last seen on July 3.

Market analysts said persistent buying by stockists and jewellers for the festive season demand and firm trend in global markets continued to support the rise in gold and silver prices.

They said fears of slow down in global economic growth mainly raised demand for the precious metal as a safe haven for investors and lifted the prices. Gold in global markets, which normally sets the price trend on the domestic front, added $6.50 to $1,221.90 an ounce.

Investors shifting their funds from weak equity markets to rising bullion for quick gains, also influenced the trading sentiment to some extent, traders said. Gold of 99.99 and 99.5 per cent purity rose by Rs 75 each to Rs 18,870 and Rs 18,770 per 10 grams respectively.

However, sovereign remained steady at Rs 14,800 per piece of eight grams in limited deals. In a similar fashion, silver ready rose by Rs 115 to Rs 29,465 and weekly-based delivery by Rs 125 to Rs 29,160 per kg on buying by industrial units and coin manufacturers.

Silver coins maintained its last level of Rs 34,500 for buying and Rs 34,600 for selling of 100 pieces.

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