Gold remains higher on global cues, festive demand

Gold continued its upward journey for yet another week and recorded a rise of Rs 150 in its prices to close at Rs 32,050 per 10 grams, amid positive global cues and pick up in buying by local jewellers to meet festive season demand.

Besides, the rupee falling to an all-time low against the dollar, making imports costlier, too influenced gold prices.

However, silver ended lower owing to reduced offtake by industrial units and coin makers.

Bullion traders said a firm trend overseas as rout in equity markets boosted the gold's safe-haven appeal.

Furthermore, pick up in buying by local jewellers to meet increased demand in the festive and wedding season also supported the upside in the precious metal prices, they added.

Globally, gold ended the week higher at USD 1,218.50 an ounce and silver at USD 14.68 an ounce in New York.

In the national capital, gold of 99.9 and 99.5 per cent purity commenced the week lower at Rs 31,870 and Rs 31,720 per 10 grams, respectively, on lack of buying support but soon bounced back to hit week's high of Rs 32,120 and Rs 31,970 on positive overseas cues before ending at Rs 32,050 and Rs 31,900 per 10 grams, showing a rise of Rs 150 each.

Sovereign, however, continued to move in a narrow range in scattered deals throughout the week and settled at previous level of Rs 24,600 per piece of eight gram.

In volatile movements on alternate bouts of buying and selling, silver ready ended the week lower by Rs 400 to Rs 39,400 per kg and weekly-based delivery by Rs 360 to Rs 38,915 per kg.

On the other hand, silver coins ended higher at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces on pick up in demand from coin makers ahead of Diwali festival.