Gold regained its sheen with prices rising by Rs 360 to Rs 27,600 per ten grams in the national capital on Friday after it surged to two-week high in global markets amid increased demand from stockists.
In addition, depreciating rupee in the forex market, which makes imports costlier, also influenced the prices. Silver also saw a hefty rise of Rs 900 to Rs 42,10Gold glitters0 per kg on increased offtake by industrial units and coin makers. Sentiments turned bullish after gold rose to two-week high in global markets as concerns that a US recovery may be stalling and escalating tensions in Iraq boosted demand for the safe-haven, traders said.
Gold in Singapore, which normally sets price trend on the domestic front, rose 0.2% to $1,275.65 an ounce, the highest level since May 27 and silver by 0.5% to $19.63 an ounce, the highest since May 26.
In Delhi, gold of 99.9 and 99.5% purity went up by Rs 360 each to Rs 27,600 and Rs 27,400 per ten grams, respectively, while sovereign gained Rs 100 to Rs 24,500 per piece of eight grams. In line with a general firm trend, silver ready spurted by Rs 900 to Rs 42,100 per kg and weekly-based delivery by Rs 770 to Rs 41,370 per kg. Silver coins also flared up by Rs 2,000 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces. Gold prices on Thursday ended the US day session higher and notched a three-week high. More short covering and bargain hunting were featured, as has been the case the past few sessions. Now, some safe-haven demand is also surfacing due to unrest in Iraq. Iraq is back in the news headlines again, as civil war has broken out in that country amid escalating violence.
The big price declines in platinum and palladium prices could have seen some money coming out of those markets and into gold and silver. And some downbeat US economic data that saw a rise in weekly jobless claims and lower-than-expected retail sales were also friendly for the gold market.