Gold jumps to six-week high on global move, weak rupee

Standard gold shoots up by 1.6% to close at Rs 26,620 per 10 gm

Gold jumped to trade around six-week high on Thursday following global move and depreciation in the rupee against the dollar.

Standard gold shot up by 1.6% to close at Rs 26,620 per 10 gm following around 2% or $23 increase in global markets in the last two days.

Gold is currently trading at $1142 in London, a rise of around $9 from previous close.

Triggered by dampening prospects of interest rate revision in September as hinted in the minutes of the Federal Open Market Committee (FOMC), gold's upward move is expected to continue to see the next support level of $1,165 an oz.

Silver followed suit and closed with a gain of Rs 1,000 at Rs 36,500 a kg in domestic market in tune with $0.25 rise in the white precious metal to $15.54 an oz in London. Depreciation in the rupee against the dollar supported upward move of precious metals.

The rupee weakened by 28 paise to close at Rs 65.55 against the dollar on Thursday.