Gold prices up Rs 405 per 10 gm to cross Rs 29,000 level

Gold prices today surged by Rs 405 to Rs 29,260 per 10 gram in the bullion market of the national capital, while silver zoomed by Rs 1,370 per kg on rising demand ahead of festivals and amid firm global cues.

Silver price stood at Rs 44,120 per kg in Delhi compared with Rs 42,750 per kg on Saturday.

Traders attributed the rise in prices to higher demand of precious metals for the coming festivals like Rakshabandhan compared with supply, which has tightened because of fall in imports following government measures.

Imports of gold and silver were down at USD 2.9 billion in July from USD 4.4 billion in the same month last year, according to government data.

The increase in global prices also contributed to the rise in gold and silver prices in the domestic market, traders added.

Gold prices in Singapore, which control prices in domestic markets in the Indian market, rallied 1.5 per cent to USD 1,333.94 an ounce, the highest price since July 31.

On the domestic front, gold of 99.9 and 99.5 per cent purity jumped up by Rs 405 each to Rs 29,260 and Rs 29,060 per 10 gram, respectively.

However, sovereign lacked necessary follow up support and fell by Rs 200 to Rs 24,200 per piece of eight gram.

Silver ready prices zoomed by Rs 1,370 to Rs 44,120 per kg and weekly-weekly-based delivery by Rs 1,320 to Rs 44,020 per kg. Silver coins also spurted by Rs 2,000 to Rs 82,000 for buying and Rs 93,000 for selling of 100 pieces.

India, the largest gold consumer in the world, imported 860 tonnes of gold in 2012. In the first three months of 2013 calendar year, import stood at 215 tonnes.

Gold import stood at about 335 tonnes in the April-June quarter.