Gold up Rs 115 on marriage demand

Gold prices spurted by Rs 115 at Rs 11,700 per 10 grams in the bullion market here on Thursday as marriage season demand picked up amid positive global trends.

Marketmen said sentiment turned bullish on fresh buying by jewellery fabricators and local parties to meet heavy purchases for the marriage season.

A better trend in global markets also boosted the trading sentiment, in the gold. In London, the metal climbed by $5.80 to $906.40 and silver jumped 12 cents at $16.65 an ounce in London.

Fears of a fall in the production in South Africa remained a supporting factor for the rising trend, marketmen said.

AngloGold Ashanti, the world's third-biggest gold producer, said output in South Africa will drop by 400,000 ounces in 2008 because of power shortages. Standard gold and ornaments here recovered by Rs 115 each at Rs 11,700 and Rs 11,550 per 10 grams, respectively.

Sovereign, too, was in demand and advanced by Rs 50 to settle at Rs 9,400 per piece of eight grams.

In a similar fashion, silver ready notched a gain of Rs 210 at Rs 20,850 a kg and silver weekly-based by Rs 170 at Rs 21,300 a kg.

On the other hand, silver coins hovered around the previous level of Rs 25,600 for buying and Rs 25,700 for selling of 100 coins.