Gold prices soar on wedding season demand, global cues

New Delhi-India (Nov 12)  Gold prices soared by Rs 400 to Rs 26,450 per 10 grams in the national capital on Wednesday on emergence of buying by jewellers and retailers on the back of ongoing wedding season demand and firming global cues.

In the national capital, gold of 99.9 and 99.5 per cent purity shot up by Rs 400 each to Rs 26,450 and Rs 26,250 per 10 grams, respectively. The yellow metal had lost Rs 400 in the past two days.

Bullion traders said besides ongoing wedding season demand, a firm global trend as the weakening in dollar revived the appeal of the metal as an alternative investment, mainly boosted trading sentiment.

Gold in New York, which normally sets price trend in the domestic commodity market, gained 0.3 per cent to US $1,163 an ounce in Tuesday's trade.

Sovereign, however, held steady at Rs 23,700 per piece of eight grams.

On similar lines, silver also recovered by Rs 350 to Rs 35,500 per kg on increased offtake by industrial units and coin makers.

Silver ready recovered by Rs 350 to Rs 35,500 per kg and weekly-based delivery by Rs 110 to Rs 34,600 per kg.

On the other hand, silver coins ruled flat at Rs 58,000 for buying and Rs 59,000 for selling of 100 pieces.