Gold prices surge by Rs225 on global uptrend, higher buying

New Delhi-India (Jan 22)  A global upward move and increased buying by local jewellers pushed gold prices higher by Rs225 to Rs31,075 per 10 grams on Monday. Silver prices, however, held steady at Rs39,900 per kg on scattered buying by consuming industries.

Traders said a firming trend overseas, where gold strengthened on softer dollar as investors sought safe haven assets after the US government shutdown due to a funding impasse, influenced gold prices in the local market. Increased buying by local jewellers to meet ongoing wedding season demand at domestic spot markets also supported the upside, they said.

Gold rate rose 0.06% to $1,331.40 in Singapore.

In the national capital, gold of 99.9% and 99.5% purity edged up by Rs225 each to Rs31,075 and Rs30,925 per 10 grams, respectively. It had gained Rs20 on Saturday. Sovereign also gained Rs100 to end at Rs24,900 per piece of eight grams in scattered deals.

On the other hand, silver ready held flat at Rs39,900 per kg on little doing while weekly-based delivery rose by Rs145 to Rs39,015 per kg. Silver coins, however, continued to be asked for at the previous level of Rs74,000 for buying and Rs75,000 for selling of 100 pieces.

LiveMint