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Rediff.com  » Business » Gold hits 2-month high to regain Rs 29,000-level on global cues

Gold hits 2-month high to regain Rs 29,000-level on global cues

August 08, 2014 15:54 IST

Bullion graphGold prices again crossed the Rs 29,000-mark to hit over two-month high by rising Rs 300 to Rs 29,100 per ten gram in the national capital today, mostly in tandem with a firming trend overseas as worsening tensions in Iraq fuelled safe-haven demand.

In addition, rising physical demand in view of festive season and depreciating rupee that slumped to five-month low supported the upside in the precious metal prices.

The rupee was trading lower at Rs 61.38 after dipping to 61.74 (intra-day).

Silver also rose by another Rs 200 to Rs 44,700 per kg on increased offtake by industrial units and coin makers.

Traders said besides festive season demand from jewellers and stockists, a firming global trend where gold advanced to three-week high, as haven demand increased on unrest in the West Asia and tension over Ukraine, buoyed the sentiment here.

They said costlier imports following weakness in the rupee too influenced gold prices.

Globally, gold in Singapore, which normally sets price trend on the domestic front, rose 0.7 per cent to $1,322.14 an ounce, the highest since July 18. Silver also advanced 0.6 per cent to $20.08 an ounce.

In Delhi, gold of 99.9 and 99.5 per cent purity surged by Rs 300 each to Rs 29,100 and Rs 28,900 per ten gram respectively, a level last seen on May 21.

The yellow metal had gained Rs 410 in the previous two sessions.

Sovereign followed suit and advanced by Rs 100 to Rs 25,000 per piece of eight gram.

In a similar fashion, silver ready rose further by Rs 200 to Rs 44,700 per kg and weekly-based delivery by Rs 140 to Rs 44,180 per kg. The white metal had gained Rs 450 on Thursday.

Silver coins, however, remained flat at Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.

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