Gold, silver advance on strong global cues

Gold prices rebounded by Rs 280 to Rs 31,700 per ten gram in the national capital today on brisk buying by stockists and jewellers to meet the festive season demand amid a firm global trend.

 

Silver also spurted by Rs 1,730 to Rs 53,530 per kg on increased offtake by industrial units and coin makers.

 

Traders said brisk buying by stockists to meet the festive season demand mainly led an upsurge in gold and silver prices.

 

Firm global trend where gold jumped to a 11-week high, topping 1,400 dollar an ounce, as sales of new US homes fell, boosting speculation that the Federal Reserve will maintain economic stimulus, also supported the upsurge, they said.

 

Gold in New York, which normally set price trend on the domestic front, rose by 1.5% to 1,396.30 dollar an ounce, after touching 1,400.38 dollar, highest since June 7.

 

On the domestic front, gold of 99.9 and 99.5% purity rose by Rs 280 each to Rs 31,700 and Rs 31,500 per ten grams, respectively. It had lost Rs 330 yesterday. Sovereign remained steady at Rs 25,100 per piece of eight gram.

 

In a similar fashion, silver ready spurted by Rs 1,730 to Rs 53,530 per kg and weekly-based delivery by Rs 1,950 to Rs 53,600 per kg. The metal had lost Rs 100 yesterday.

 

Silver coins also surged by Rs 2,000 to Rs 90,000 for buying and Rs 91,000 for selling of 100 pieces.