Gold surges on firm global cues, festive buying

Gold prices surged by Rs 175 to Rs 18,300 per ten grams in the national capital today on buying by stockists for the festive season amid a firm global trend.

Silver remained in demand from industrial users and coin makers and advanced by Rs 200 to Rs 29,500 per kg.

The trading sentiment turned bullish as gold went up for the sixth straight day in global markets on optimism that China's decision to relax rules on trading the metal will help in increasing investor demand.

Gold in overseas market, which normally sets the price trend on the domestic front, strengthened 0.8 per cent to $1,195.05 an ounce.

Gold of 99.9 per cent and 99.5 per cent purity spurted by Rs 175 each to Rs 18,300 and Rs 18,200 per ten gram, respectively. Sovereigns also gained Rs 100 to Rs 14,600 per piece of eight grams.

In line with the general firming trend, silver continued to rise for the fourth day by adding Rs 200 to Rs 29,500 per kg and for weekly-based delivery by Rs 175 to Rs 29,240 per kg. 

Silver coins also maintained their rising trend for the third day on festive demand and gained Rs 100 to Rs 34,400 for buying and Rs 34,500 for selling of 100 pieces.