Extending gains for the third straight session, gold prices today rose by R95 to R31,385 per 10 gm in New Delhi on a pick-up in seasonal demand amid a firming global trend. Silver also rebounded by R450 to R59,750 per kg on increased offtake by industrial units and coin-makers. Traders said the hike in import duty by the government also influenced gold prices. In New York, gold rose by $1.70 to $1,691.80 an ounce and silver by 0.19% to $32.21 an ounce. On the domestic front, gold of 99.9% and 99.5% purity advanced by R95 each to R31,385 and R31,185 per 10 gm, respectively. Gold rose by R380 in the last two sessions.
Gold demand unusually high
Physical gold demand has been unusually strong for this time of year, with good buying from Southeast Asia, according to Standard Bank Plc. The Standard Bank Gold Physical Flow Index signaled demand climbed to the highest since November, the bank said Tuesday. Purchases typically pick up towards the end of the year amid religious festivals and the wedding season in India . Gold reached a four-week high of $1,696.28 an ounce in London on January 17. The government raised taxes on gold imports two days ago to reduce a record current-account deficit and to moderate demand.