Gold and silver jump on Diwali buying, global cues

Gold and silver prices climbed in the national capital on Saturday on frantic buying by stockists and jewellery fabricators for the approaching Diwali festival amid firm global cues.

Gold prices gained Rs. 170 to Rs. 32,570 per ten gram, while silver spurted Rs. 450 to Rs. 49,900 per kg on increased offtake by jewellers and industrial units.

Bullion merchant said frantic buying by stockists and jewellery fabricators to meet upcoming festivals like Dhanteras and Diwali mainly led to rise in precious metal.

A firm global trend on speculation that the US Fed might maintain stimulus to boost economic growth also supported the sentiment, they said.

Gold in New York, which normally sets price trend on the domestic front, rose by 0.2 per cent to USD 1,352.50 an ounce, the highest since September 20.

On the domestic front, gold 99.9 and 99.5 per cent purity climbed Rs. 170 each to Rs. 32,570 and Rs. 32,370 per ten gram, respectively, while sovereign held steady at Rs. 25,300 per piece of eight gram.

Silver ready rose Rs. 450 to Rs. 49,900 per kg and weekly-based delivery by Rs. 50 to Rs. 49,700 per kg. Silver coins, however, remained flat at Rs. 88,000 for buying and Rs. 89,000 for selling of 100 pieces.