The vulnerable Indian rupee churned gold prices to hit historic high of Rs 32,585 per ten grams at the domestic bullion market today on stockists’ and investors’ off-take amid supply constraints due to government curbs as well as supported by bullish global cues.
Silver also soared to near six month high to retrace Rs 56,000-per kg level,owing to heavy speculative off-take.
The Indian rupee fell to a historic low amid concerns over the passing of Food Security Bill in Lok Sabha yesterday and sharp fall in local equities to a massive 194 paise to log 66.24 per dollar.
Standard gold of 99.5 per cent purity,spurted by Rs 820 to end at Rs 32,585 per 10 gm from Monday’s closing level of Rs 31,765.
Pure gold of 99.9 per cent purity shot-up by Rs 810 to conclude at Rs 32,730 per 10 gm from Rs 31,920.
Silver ready (.999 fineness) jumped by a hefty Rs 1,940 to finish at Rs 56,670 per kg as compared to Rs 54,730 yesterday.
“Rupee depreciating to a historic low along with supply problems led the surge in gold,” a forex dealer said.
Overseas,gold hit a 11-week high on safe-haven buying as West edged towards possible military action against Syria and hope over lengthened US monetary stimulus.
Spot gold was bid higher at US 1,413.24 an ounce in early trade,while silver was bid up at USD 24.31 an ounce.