Extending its rally for the eleventh day, gold surged by Rs 365 to over six-week high of Rs 26,700 today amid a firming trend in global markets and buying by jewellers to meet the wedding season demand.
Silver also recorded a handsome gain of Rs 1,000 at Rs 36,300 per kg on increased offtake by industrial units and coin makers.
Bullion traders said apart from a firming trend overseas where gold jumped to over one month highs as prospects dimmed for a US interest rate increase in September, boosting the metal’s allure, increased buying by jewellers to meet ongoing wedding season demand, mainly kept prices of the precious metals higher.
Globally, gold in Singapore, which normally sets price trend on the domestic front, climbed 0.5 per cent to trade at over one-month high of USD 1,139.59 an ounce after surging 1.5 per cent in yesterday’s trade and silver added 0.4 per cent to USD 15.38 an ounce. It soared 3 per cent in yesterday’s trade.
Besides, diversion of funds from weakening equities to rising bullion supported the upside in prices, they said.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity climbed by Rs 365 each to Rs 26,700 and Rs 26,550 per 10 grams, respectively, a level last seen on July 1. It had gained Rs 1,355 in previous 10 days.
The Sovereign gained Rs 100 at Rs 22,500 per piece of eight grams.
Following gold, silver ready too rallied by Rs 1,000 to Rs 36,300 per kg and weekly-based delivery by Rs 960 to Rs 35,880 per kg.
In line with overall trends, silver coins also shot up by Rs 1,000 to Rs 51,000 for buying and Rs 52,000 for selling of 100 pieces.