Gold price climbs Rs. 340 to over two-month high

Mumbai-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 off-take 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. Gold in Singapore, which mostly determines the price trend in the domestic market, advanced 0.7 per cent to $1,095.07 an ounce.

Besides, increased buying by jewellers and retailers to meet ongoing wedding season demand fuelled the uptrend, they said. In the national capital, gold of 99.9 and 99.5 per cent purity spurted by Rs. 340 each to Rs. 26,690 and Rs. 26,540 per ten grams respectively, a level last seen on November 3. The yellow metal had lost Rs. 200 in the previous two days. Sovereign gold followed suit and edged higher by Rs. 100 to Rs. 22,400 per piece of eight grams.

Tracking gold, silver ready also surged by Rs. 400 to Rs. 34,400 per kg and weekly-based delivery by Rs. 315 to Rs. 34,360 per kg. On the other hand, silver coins held steady at Rs. 49,000 for buying and Rs. 50,000 for selling of 100 pieces.

Source: TheHindu