Gold tops Rs 31,000-level after 29 months

Gold prices spurted to Rs 31,340 per 10 grams, a 29-month high, by surging Rs 540 in the bullion market today, tracking a firm trend overseas amid increased buying by jewellers at the domestic spot market.

Silver ready took losses forward on easing demand from coin makers and lost another Rs 220 to Rs 47,080 per kg, while silver week-based delivery recovered by Rs 680 to Rs 47,480 on speculative buying.

Bullion traders said sentiment bolstered after gold gained overseas as the dollar weakened and the US economy grew less-than-expected in the second quarter, boosting demand for safe-haven assets.

Globally, gold rose 1.2% to $1,357.50 an ounce in New York yesterday. Prices have climbed 2.8% this month.

Besides, persistent buying by jewellers following pick up in demand for ornaments at domestic spot market, supported the upside, they said.

In the national capital, gold of 99.9% and 99.5% purity soared Rs 540 each to Rs 31,340 and Rs 31,190 per 10 grams, respectively, a level last seen on February 26, 2014, when it had stood at Rs 31,530.

Sovereign, also shot up by Rs 300 to Rs 24,300 per piece of eight grams.

On the other hand, silver ready fell further by Rs 220 to Rs 47,080 per kg, while weekly-based delivery surged by Rs 680 to Rs 47,480 on speculative buying.

Silver coins, however, continued to be traded at the previous level of Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.