Gold price surges by Rs365 to over 6-week high of Rs26,700

New Delhi-India (Aug 20)  Extending its rally for the eleventh day, gold surged by Rs365 to over six-week high of Rs26,700 on Thursday amid a firming trend in global markets and buying by jewellers to meet the wedding season demand.

Bullion traders said apart from a firming trend overseas where gold jumped to over one month highs as prospects dimmed for a US interest rate increase in September, boosting the metal’s allure, increased buying by jewellers to meet ongoing wedding season demand, mainly kept prices of the precious metals higher.

Globally, gold in Singapore, which normally sets price trend on the domestic front, climbed 0.5% to trade at over one-month high of $1,139.59 an ounce after surging 1.5% in Wednesday’s trade and silver added 0.4% to $15.38 an ounce. It soared 3% in yesterday’s trade.

Besides, diversion of funds from weakening equities to rising bullion supported the upside in prices, they said.

In the national capital, gold of 99.9% and 99.5% purity climbed by Rs365 each to Rs26,700 and Rs 26,550 per 10 grams, respectively, a level last seen on 1 July. It had gained Rs1,355 in previous 10 days. The Sovereign gained Rs100 at Rs22,500 per piece of eight grams.

Following gold, silver ready too rallied by Rs1,000 to Rs36,300 per kg and weekly-based delivery by Rs960 to Rs35,880 per kg. In line with overall trends, silver coins also shot up by Rs1,000 to Rs51,000 for buying and Rs52,000 for selling of 100 pieces.

Source: LiveMint