Gold, silver prices shoot up

Gold prices in the national capital Saturday soared by Rs. 715 to Rs.26,850 per 10 grams as the demand started picking up due to the wedding season.

This is the biggest single day gain this year. Silver prices also shot up by Rs.2,100 to Rs.36,700 per kilogram.

This price spike came after weeks of slump. For the last couple of weeks gold price was hovering around Rs.25,000 per 10 grams riding on the back of an improving global economy

"Government is reconsidering restriction on gold import, which could be one of the reasons for this price shoot up," Bachhraj Bamalwa, founder partner, Nemichand Bamalwa, told IANS.

"It seems gold price has bottomed out. We were expecting it to happen in the course of time. Now in a slow moment turnaround will happen. It is likely that prices will only move upwards now," Ashok Minawala, board member of All India Gems and Jewellery Trade Federation told IANS.

In Mumbai, the price was hovering around Rs.26,800 per 10 grams.

Also depreciating rupee against the dollar added to the sentiment. Costlier dollar makes import of the precious yellow metal more expensive.