Gold prices rallied by Rs 270 to Rs 16,775 per ten grams at the bullion market here on Wednesday due to heavy stockists buying sparked by a steep rise in international markets.
Silver too witnessed a sharp surge on the back of high domestic demand as well as industrial support. Besides firming of international prices which normally sets the trend for domestic market, good local buying on the occasion of ?Gudi Padwa? festive season also contributed to the surge, traders said.
Standard gold (99.5 purity) strengthened by Rs 270 per ten grams to close at Rs 16,775 from Monday’s closing level of Rs 16,505. Pure gold (99.9 purity) also shot up by a similar margin of Rs 270 per ten grams to Rs 16,860 as against Rs 16,590 previously.
Silver ready (.999 fineness) spurted by Rs 515 per kilo to finish at Rs 27,515 from Rs 27,000. In London, gold climbed above USD 1,130 an ounce after the dollar came under pressure on Fed decision to keep interest rates at current record lows.
Spot gold was bid at USD 1,131.75 an ounce in early trade as against USD 1,124.70 late in New York on Tuesday. US gold futures for April delivery rose by USD 9 to USD 1,132.10 an ounce on the Comex division of the NYMEX. Silver was bid at USD 17.55 an ounce as against USD 17.40.