Gold extends gains on festive season buying, global cues

Continuing its rising streak for the third straight day, gold prices advanced by Rs 150 to Rs 28,400 per ten gram in the national capital today on sustained buying by jewellers and retailers, driven by upcoming festive season demand amidst a firming trend overseas.

Silver recovered by Rs 50 to Rs 44,900 per kg on increased offtake by industrial units and coin makers.

Traders said increased buying by jewellers and retailers to meet ensuing festive season demand mainly kept gold prices up for the third straight day.

Besides, a firming global trend where gold prices rose the most in a week after US employers added less workers than forecast last month, increasing pressure on the Federal Reserve to maintain lower interest rates, further fuelled the uptrend.

Gold in New York, which normally sets price trend on the domestic front, rose 0.9% to $1,294.80 an ounce, the biggest gain since July 25.

In Delhi, gold of 99.9 and 99.5% purity jumped up by Rs 150 each to Rs 28,400 and Rs 28,200 per ten gram respectively. It had gained Rs 50 in the previous two days.

Sovereign, however, remained flat at Rs 24,700 per piece of eight gram in restricted buying.

In line with a general firming trend, silver ready recovered by Rs 50 to Rs 44,900 per kg while weekly-based delivery shed Rs 10 at Rs 44,425 per kg.

On the other hand, silver coins maintained steady trend at Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.