Gold continues rallying momentum; hits one-month high

Aug 08 2014, 19:31 IST
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SummarySpot gold was sharply higher at USD 1,318.60 an ounce in early European trade.

Gold prices marched ahead to scale a one-month high mark at the domestic bullion market here today on sustained demand from stockists and jewellery traders, supported by global bullishness.

Silver also moved up further on better industrial offtake.

Standard gold (99.5 purity) surged by Rs 210 to conclude at Rs 28,585 per 10 grams from Thursday's Rs 28,375.

Pure gold (99.9 purity) also jumped by same margin to finish at Rs 28,735 per 10 grams against Rs 28,525.

Silver (.999 fineness) gained Rs 45 to settle at Rs 44,670 per kg compared to Rs 44,625 yesterday.

The wave is expected to continue, in view of strong demand from jewellery makers ahead of festive season and wedding related demand amid weakening rupee in the midst of a global surge, a bullion trader commented.

Globally, the shiny metal regained its luster as worries over mounting geopolitical tensions in the Middle East following US authorisation of airstrikes in Iraq as well as lingering Russia-Ukraine standoff mainly spurred buying interest in gold.

Moreover, continued sell-off in financial markets worldwide against the backdrop of uncertainty fears forced nervous investors to hedge their positions to reduce risk, triggering safe-haven demand.

Spot gold was sharply higher at USD 1,318.60 an ounce in early European trade.

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