Gold price hits 2-month high on global cues

Written by Press Trust of India | Updated: Aug 9 2014, 14:02pm hrs
Gold prices again crossed the Rs 29,000 mark to hit over two-month high by rising Rs 300 to Rs 29,100 per 10 gm in the Capital on Friday, mostly in tandem with a firming trend overseas as worsening tensions in Iraq fuelled safe-haven demand.

In addition, rising physical demand in view of festive season and depreciating rupee that slumped to five-month low supported the upside in the precious metal prices.

Silver also rose by another Rs 200 to Rs 44,700 per kg on increased offtake by industrial units and coin makers.

Traders said a firming global trend where gold advanced to three-week high, as haven demand increased on unrest in West Asia and tension over Ukraine, buoyed sentiment. They said costlier imports following weakness in the rupee too influenced gold prices.

Globally, gold in Singapore, which normally sets the price trend on the domestic front, rose 0.7% to $1,322.14 an ounce, the highest since July 18. Silver also advanced 0.6% to $20.08 an ounce.

In Delhi, gold of 99.9% and 99.5% purity surged by R300 each to R29,100 and R28,900 per 10 gm respectively, a level last seen on May 21. The yellow metal had gained R410 in the previous two sessions. Sovereign followed suit and advanced by R100 to R25,000 per piece of 8 gm.

In a similar fashion, silver ready rose further by R200 to R44,700 per kg and weekly-based delivery by R140 to R44,180 per kg. Silver coins, however, remained flat at R77,000 for buying and R78,000 for selling of 100 pieces.