Gold prices rise by Rs 590 to regain glitter on festive demand

Mumbai-India (Sept 26)   Gold regained its glitter to trade Rs 590 higher at Rs 27,550 per ten grams in the national capital on Friday on the back of increased demand from jewellers and retailers, driven by the ongoing festive and wedding season.

Gold has witnessed the biggest rise since June 20 this year when it had gained Rs 605 to Rs 28,625 per ten grams.

Bullion traders attributed the rise in precious metal prices to emergence of buying by jewellers and retailers driven by ongoing "Navratras", considered as an auspicious week for making new purchases according to Hindu mythology.

Besides, firming trend overseas as tensions in the Middle East boosted demand for protection of wealth coupled with weakening rupee that made import costlier, also buoyed sentiments, they said.

Silver, which had lost Rs 650 in the previous session, also recorded a significant rise of Rs 550 to Rs 39,900 per kg on increased offtake by industrial units and coin makers.

Globally, gold in Singapore, which normally determines price trend on the domestic front, rose by 0.6 per cent to US $1,228.51 an ounce and silver by 0.8 per cent to US $17.66 an ounce.

In Delhi, gold of 99.9 and 99.5 per cent purity zoomed by Rs 590 each to Rs 27,550 and Rs 27,350 per ten gram respectively. Sovereign, however, held steady at Rs 24,200 per piece of eight gram. It had lost Rs 250 in Thurday's trade.

Silver ready also spurted by Rs 550 to Rs 39,900 per kg and weekly-based delivery by Rs 685 to Rs 39,540 per kg.

Silver coins, however, continued to be enquired at the last level of Rs 69,000 per 100 pieces for buying and Rs 70,000 for selling.