Gold prices rise up to Rs 32,380 per ten grams on Akshaya Tritiya buying

Traders said depreciating rupee against the dollar helped gold prices to trade higher

Gold prices went up by Rs 30 to Rs 32,380 per ten grams at the bullion market on Wednesday largely due to token buying by jewellers on the auspicious occasion of 'Akshaya Tritiya', but a subdued trend overseas capped the gains.

Silver strengthened by Rs 150 at Rs 40,450 per kg largely in step with gold.

Traders said, besides token purchases by consumers on the auspicious occasion of 'Akshaya Tritiya', depreciating rupee against the dollar helped gold prices to trade higher.

A weak rupee, which slipped to a near seven-month low against the dollar making imports costlier, too supported the upside in gold prices.

Globally, gold fell 0.18 per cent to $1,344.80 an ounce in Singapore.

Akshaya Tritiya is considered to be an auspicious day to make purchases of valuables particularly jewellery, gold coins, diamond and other gold items.

All India Sarafa Association Vice-President Surinder Kumar Jain said, "Akshaya Tritiya has boosted the sales of jewellery and other gold items by almost 15 per cent today and is expected to pick up later in the day".

Rakesh Anand of R K Jewellers here said, "A series of offers from leading jewellery houses such as lower making charges and other incentives too attracted increased demand from consumers".

Meanwhile, gold prices have risen by over 9 per cent since the last Akshaya Tritiya.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity traded higher by Rs 30 each to Rs 32,380 and Rs 32,230 per ten grams, respectively. It had gained Rs 350 on Tuesday.

Sovereign, however, remained flat at Rs 24,900 per piece of eight grams in limited deals.

In tandem with gold, silver ready rose by Rs 150 to Rs 40,450 per kg and weekly-based delivery by Rs 250 to Rs 39,490 per kg.

Silver coins, however, held steady at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.