Continuing its upward march for the third day in a row, gold advanced by R120 to R31,265 per 10 gm in Delhi today on increased buying by stockists and ornament-makers for the ensuing wedding season. Silver also strengthened by R560 to R58,300 per kg on increased offtake by industrial units and coin- makers. Sentiments remained bullish as gold rose to a two-week high in overseas markets, gaining with other commodities as the dollar weakened, after the US Congress passed the fiscal cliff deal, easing concerns that a recovery in the worlds biggest economy may get derailed. In global markets, gold was up by 0.7% to $1,684.75 an ounce, the highest since December 18. Silver by 1.1% to $30.66 an ounce in Singapore.
Gold imports may have risen during Oct-Dec
Gold imports are likely to have risen during the October-December quarter and the uptrend is likely to continue in the coming months as well, Kotak Mahindra Bank said in a research note. As gold prices are witnessing a slowdown globally, the demand might have increased due to Diwali and the wedding season, it said. With gold prices falling globally and a steady dollar-rupee rate, the rupee price of gold has now dipped to below R31,000 per 10 gm. This is expected to be a good price point for demand to kick higher, Kotak said.