India: Gold price extends gains, hits 9-month high on global cues

Mumbai-India (Feb 6)  Gold prices surged for the 7th straight day, moving up by Rs. 30 to hit nine-month high of Rs, 27,700 per 10 grams at the bullion market today, tracking a firm trend overseas and buying by jewellers to meet the wedding season demand.

On the other hand, silver held steady at Rs, 35,800 per kg in limited deals.

Bullion traders said a firming trend overseas as a sell-off in equities and signs of uneven US economic growth fuelled bets that the Fed would hold off on raising rates again, boosted appeal of the precious metals, influenced gold prices here.

Besides, sustained buying by jewellers driven by ongoing wedding season demand too helped gold to trade at nine-month high, they said.

Globally, gold climbed 1.57 per cent to USD 1,173.50 an ounce and silver by 1.08 per cent to USD 15.01 an ounce in New York in yesterday’s trade.

In the national capital, gold of 99.9 and 99.5 per cent purity edged up by Rs. 30 each to Rs. 27,700 and Rs. 27,550 per ten grams respectively, a level last seen on May 19 2015.

The precious metal had gained Rs. 620 in the previous six days.

Sovereign, however held steady at Rs. 22,600 per piece of eight grams.

On the other hand, silver ready held unchanged at Rs. 35,800 per kg, while weekly-based delivery weakened by Rs. 20 to Rs. 35,805 per kg.

Meanwhile, silver coins continued to be traded at last level of Rs. 52,000 for buying and Rs. 53,000 for selling of 100 pieces.

Source: TheHindu