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Gold whizzes past Rs 31K level on heavy buying

Source : PTI
Last Updated: Sat, Aug 17, 2013 12:16 hrs
Customers look at gold bangles inside jewellery shop in Hyderabad

Gold continued its ascent and today reclaimed the psychologically important Rs 31,000 per 10 gm mark at the domestic bullion hub on steady wave of speculative and stockists' buying frenzy amid strong global sentiment.

Significant increase in jewellery and investment demand against the backdrop of sliding rupee value also helped prices surge.

The precious metal has been on the rise ever since the government clamped down on gold imports by imposing series of duty hikes and constraints on supplies to control the widening current account deficit (CAD).

Moreover, there is a huge supply shortage in the market due to lack of clarity on modalities of imports.

Encouraged by the overall trend, industrial metal silver also surged ahead to reclaim the important Rs 51,000 per kilogram level driven by aggressive speculative buy-out along with robust industrial offtake.

Standard gold of 99.5 per cent purity soared by Rs 630 to conclude at Rs 31,325 per 10 gm from Friday's closing level of Rs 30,695.

Pure gold of 99.9 per cent purity spiked by Rs 640 to end at Rs 31,470 per 10 gm from Rs 30,830.

Silver ready (.999 fineness) jumped by a massive Rs 1,505 to finish at Rs 51,485 per kg compared to Rs 49,980 yesterday.

Over the week, gold zoomed 9.76 per cent and silver leapt 18.93 per cent, in a record weekly surge.

Globally, the yellow metal maintained its strong momentum driven by strong physical demand as well as hedge fund buying supported by weak dollar despite US Fed tapering talks.

Gold for December delivery rose USD 10.10 to settle at USD 1,371 an ounce on the Comex division of the NYMEX late yesterday. Silver for September contract advanced 39 cents to close at USD 23.32 an ounce.


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