Gold price rises by Rs 220, silver climbs Rs 850 on global cues

Mumbai-India (May 5)  Gold snapped its three-day losing streak on Tuesday by surging Rs 220 to trade at Rs 27,220 per 10 gm at the bullion market on positive global cues and increased buying by jewellers to meet wedding season demand.

Silver also climbed by Rs 850 to Rs 37,750 per kg on increased offtake by industrial units and coin makers.

Bullion traders attributed the sharp recovery in gold prices to a firming trend in global markets and increased buying by jewellers, triggered by ongoing wedding season.

Gold in New York, which normally determines price trend on the domestic front, rose by 0.84 per cent to $1,187.80 an ounce and silver by 1.68 per cent to $16.37 an ounce in Monday's trade.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity rebounded by Rs 220 each to Rs 27,220 and Rs 27,070 per 10 gm, respectively. It had lost Rs 475 in the previous three sessions.

Sovereign, however, remained flat at Rs 23,700 per piece of eight grams in limited deals.

Tracking gold, silver ready also recorded a hefty rise of Rs 850 to Rs 37,750 per kg and weekly-based delivery by Rs 575 to Rs 37,115 per kg.

Silver coins also spurted by Rs 1,000 to Rs 56,000 for buying and Rs 57,000 for selling of 100 pieces.

Source: BusinessToday