Gold zooms above Rs 32k-level on strong marriage season demand

[1]

Gold on Thursday crossed the coveted Rs 32,000-mark for the first time in the national capital, driven by increased buying by stockists ahead of the marriage season amid a firming global trend.

The precious metal gained Rs 320 to Rs 32,300 per 10 grams. It has gained by Rs 1,555 per 10 grams in the last two weeks.

Bullion merchants said the trading sentiment also bolstered as gold climbed in international markets on speculation the European Central Bank will announce unlimited purchases of government bonds to defuse the euro-zone debt crisis, increasing demand for bullion as an alternate investment.

Gold is likely to scale new heights in the coming days for the marriage season, they added.

"Gold is on upward march and likely to touch new peaks in the coming days for festivals...," All India Sarafa Association General Secretary Surender Jain said, adding that a firming global trend and weak rupee will make imports of the metal costlier.

India is mainly dependent on imports for the precious metal, thus the global bullion trend sets the price trend in the country.

In London, gold rose by 0.96 per cent to USD 1,709.70 an ounce and silver by 1.8 per cent to USD 32.85 an ounce, the highest level since April 4 this year.

Following the general firming trend, silver gained Rs 1,100 to Rs 61,100 per kg on rising demand among industrial units and coin-makers. On the domestic front, gold of 99.9 and 99.5 per cent purity spurted by Rs 320 each to Rs 32,300 and Rs 32,100 per 10 grams, respectively.

Sovereigns followed suit and shot up by Rs 200 to Rs 25,250 per piece of eight grams. Silver ready spurted by Rs 1,100 to Rs 61,100 per kg and weekly-based delivery by Rs 1395 to Rs 63,345 per kg.
Silver coins shot up by Rs 1,000 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.