India gold hits 4-month high on firm global cues

Traders say, in India the cash crunch forcing retail consumers to trim purchases

Gold prices soared by Rs 325 to regain the Rs 30,000-mark and trade at over four-month high of Rs 30,175 per 10 grams at the bullion market on Saturday, amid a firm overseas trend and wedding season buying by jewellers.

Gold prices had touched Rs 30,325 per 10 grams on October 18, 2016.

Silver, too, followed suit and surged by Rs 600 to Rs 43,800 per kg on increased offtake by industrial units and coin makers.

Bullion traders said sentiment got a boost after gold climbed in the global markets, as weakness in the dollar pushed up demand for precious metals as safe-haven.

Globally, gold rose 0.61 per cent to $1,256.90 an ounce, a level last seen in November last year, and silver rose 0.99 per cent to $18.33 an ounce in New York in Friday trade.

Besides, increased buying by local jewellers, triggered by ongoing wedding season demand also supported the upmove, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity rose by Rs 325 each to Rs 30,175 and Rs 30,025 per 10 grams respectively, a level last seen on October 18, 2016.

Sovereign, however, remained flat at Rs 24,500 per piece of eight grams.

Following rally in gold, silver ready also registered a sharp rise of Rs 600 to Rs 43,800 per kg and weekly-based delivery recaptured the Rs 43,000-mark by rising Rs 760 to Rs 43,350 per kg.

Silver coins, too, spurted by Rs 1,000 to Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.