Gold surges to 5-week high on brisk buying, tight supply

Gold today surged to five week high by gaining Rs 280 to Rs 28,425 per ten grams in the national capital on increased buying by stockists and jewellers against restricted supply.

After gaining Rs 325 in the previous session, the fresh upsurge pushed up gold prices to a level last seen on June 19, in the face of tight stocks position ever since the RBI imposed fresh import norms.

Under a notification, banks and authorised agencies have been directed to ensure that at least 20% of imported gold is made available for exports.

However, silver lacked necessary buying support and declined by Rs 120 to Rs 41,230 per kg.

In the national capital, gold of 99.9 and 99.5% purity advanced by Rs 280 each to Rs 28,425 and Rs 28,225 per ten grams, respectively. Sovereign remained steady at Rs 24,400 per piece of eight gram.

On the other hand, silver ready declined by Rs 120 to Rs 41,230 per kg and weekly-based delivery by Rs 270 to Rs 41,010 per kg, respectively. The white metal had gained Rs 125 in the previous session.

Silver coins continued to be asked around previous level of Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces in limited deals.