Gold prices gain on marriage seasonal demand

Written by Press Trust of India | Updated: Nov 30 2013, 23:14pm hrs
Gold prices gained marginally higher after rebounding from last week's relentless sell-off on the back of renewed local buying support as well as marriage seasonal demand.

The yellow-metal stuck in a tight range, witnessed wide swings following heavy speculative selling amid ongoing uncertainty about earlier-than-expected withdrawal of Fed's stimulus programme.

However, attractive low-level investment buying coupled with jewellery stockists and wedding related demand triggered a fag-end recovery in prices.

The industrial metal, silver remained under intense selling pressure due to frantic speculative unwinding and lack of industrial demand.

On the global front, the shiny metal rebounded modestly from a five-month low following hectic short covering and robust demand from hedge funds supported by weak dollar. But, gains were capped owing to Fed tapering uncertainty.

In New York, gold for February delivery finished modestly higher at USD 1,250.40 an ounce and silver March contract settled firm at USD 20.02 previously.

In the domestic market, standard gold (99.5 purity) opened sharply lower at Rs 30,480 and hovered between a high of 30,870 and a low of Rs 30,395 before finishing at Rs 30,690 from preceding weekend's level of Rs 30,665, posting a nominal gain of Rs 25 per 10 grams.

Pure gold (99.9 purity) resumed weak at Rs 30,625 and moved in a range of Rs 31,020 and Rs 30,545 before concluding at Rs 30,840 as compared to last weekend's level of Rs 30,815, showing a marginal rise of Rs 25 per ten grams.

Silver ready (.999 fineness) commenced sluggish at Rs 45,565 and fluctuated between Rs 45,480 and Rs 46,375 before ending at Rs 45,600 from last Saturday's closing level of Rs 45,940, revealing a fall of Rs 340 per kg.