Gold price surges Rs340 to hit over 2-month high on global cues

New Delhi-India (Jan 16)  Gold prices surged Rs340 to hit over two-month high of Rs26,550 per ten grams in Delhi bullion market on Saturday, taking positive cues from global market amid pick up in buying by jewellers to meet wedding season demand.

A weaker rupee, which plunged to hit fresh 28-month low of 67.59 against the dollar on Friday that made imports costlier also supported the upside in gold prices.

Bullion traders said sentiment got a boost after gold gained the most in six weeks overseas as Chinese stocks fell into a bear market and the US retail sales capped the weakest year since 2009, increasing demand for precious metals.

Gold in New York, which mostly determines the price trend in the Indian market, rose 0.96% to$1,088.80 an ounce and silver gained 0.61% to $13.91 an ounce in the Friday’s trade. Moreover, increased buying by jewellers at domestic markets, driven by wedding season also buoyed sentiment.

Back home, in the national capital, gold of 99.9 and 99.5% purity surged by Rs340 each to Rs26,550 and Rs26,400 per ten gram respectively, a level last seen on 3 November last year. It had shed Rs40 on Friday. Sovereign gold followed suit and edged higher by Rs100 to Rs22,400 per piece of eight gram.

A similar trend was also seen in silver ready that recovered by Rs220 to Rs34,015 per kg and weekly-based delivery by Rs225 to Rs34,025 per kg. Silver coins also spurted by Rs1,000 to Rs49,000 for buying and Rs50,000 for selling of 100 pieces.

Source: LiveMint