Gold hits year's high of Rs 32,500 on festive buying, global cues

Gold prices spurted by Rs 150 to trade at this year's high of Rs 32,500 per 10 grams at the bullion market Wednesday on persistent buying by local jewellers amid a firm trend overseas.

Silver, however, shed Rs 20 to Rs 39,730 per kg owing to reduced offtake by industrial units.

Traders said increased buying by local jewellers to meet festive and wedding season demand and a firm trend overseas mainly lifted gold prices to this year's highest level.

Gold prices in overseas markets rose 0.11 per cent to USD 1,232.20 an ounce in Singpore. It touched USD 1,239.68 an ounce Tuesday, highest since July 17 as geopolitical and economic uncertainty raised demand for the precious metals as a safe-haven.

Silver also moved up by 0.17 per cent to USD 14.83 an ounce.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity advanced by Rs 150 each to Rs 32,500 and Rs 32,350 per 10 grams, respectively, its highest level this year. The yellow metal had gained Rs 130 on Tuesday.

The precious metal had traded at Rs 32,450 per 10 gram on May 15.

Sovereign too traded higher by Rs 100 at Rs 24,800 per piece of eight grams.

On the other hand, silver ready eased by Rs 20 to Rs 39,730 per kg and weekly-based delivery by Rs 50 to Rs 39,010 per kg.

Silver coins, however, spurted by Rs 1,00 to Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.