Gold price surges to Rs 31,550 on spot demand

Mumbai-India (Sept 10)  Gold prices surged Rs 200 to Rs 31,550 per 10 gram on increased buying by local jewellers. Furthermore, a depreciating rupee, which plunged to a fresh record low of 72.67 against the dollar, making imports costlier, fuelled the upmove, traders said.

Silver too advanced by Rs 175 to Rs 37,950 per kg on increased demand from industrial units and coin makers. Increased buying by local jewellers to meet the rising demand for ornaments drove gold prices, but a weak overseas trend kept the gains limited.

Globally, gold softened 0.14 per cent to $1,194.50 an ounce in Singapore as the dollar strengthened against major currencies amid expectations of a US Federal Reserve interest rate hike this month, eroding demand for the precious metals as a safe haven.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity bounced Rs 200 each to Rs 31,550 and Rs 31,400 per 10 gram, respectively. The precious metal had lost Rs 160 in the previous two days.Sovereign however ruled flat at Rs 24,500 per piece of eight gram.

Silver ready prices too were higher by Rs 175 to Rs 37,950 per kg and weekly-based delivery by Rs 160 to Rs 37,325 per kg. Silver coins however continued to be traded at the previous level of Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.

BusinessLine

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