Gold gains Rs. 110 on festive season demand, global cues

Gold prices jumped by Rs. 110 to Rs. 28,500 per 10 grams in the national capital on Wednesday on festive season demand and positive global cues.

Besides, depreciating rupee which fell to almost five-month low of Rs. 61.41 (intra-day) against the U.S. dollar, making imports costlier, influenced gold prices.

However, silver fell by Rs. 950 to Rs. 44,050 per kg due to slackened demand from industrial units.

Bullion merchants said besides increased buying by jewellers and retailers to meet festive season demand, costlier imports due to weakening of the rupee, led to the rise in gold prices.

They said a firming trend overseas where gold climbed towards $1,300 an ounce also supported the uptrend.

Gold in Singapore, which sets price trend on the domestic front, gained 0.3 per cent to $1,292.26 an ounce.

In Delhi, gold of 99.9 and 99.5 per cent purity rebounded by Rs. 110 each to Rs. 28,500 and Rs. 28,300 per 10 grams, respectively. Sovereign followed suit and moved up by Rs. 100 to Rs. 24,800 per piece of eight grams.

On the other hand, silver ready declined by Rs. 950 to Rs. 44,050 per kg and weekly-based delivery by Rs. 445 to Rs. 43,645 per kg, while silver coins continued to be enquired at previous level of Rs. 77,000 for buying and Rs. 78,000 for selling of 100 pieces.