Gold climbs Rs 340 to over 2-month high as buying spikes

New Delhi-India (Jan 20)  Gold prices on Wednesday zoomed Rs 340 to trade at over two-month high at Rs 26,690 per 10 grams amid increased buying by jewellers to meet wedding season demand and a firm trend overseas.

Silver also shot up by Rs 400 to Rs 34,400 per kg on increased offtake by industrial units and coin makers.

Moreover, a weaker rupee that breached the 68-mark for the first time since September 4, 2013, to trade at 68.07, by plunging 42 paise against the dollar, supported the precious metals as it would make imports costlier.

Bullion traders said sentiments turned bullish after gold rallied towards $1,100 an ounce in global markets as equities dropped and investor holdings climbed to the highest level in two months.

Bullion graphGold in Singapore, which mostly determines the price trend in the domestic market, advanced 0.7 per cent to USD 1,095.07 an ounce.

Source: Rediff