Gold gallops to hit new peak; silver soars to nearly 1yr high
Gold rebounded sharply from its overnight crash to conquer another fresh historic peak and came within a striking distance of the Rs 32,000-mark at the bullion hub here on fresh bout of frenzied speculative buying ignited by encouraging global cues.
Silver also regained smartly and revisited nearly an 11-1/2 month high,driven by aggressive stockist demand amid strong industrial off-take.
Standard gold (99.5 purity) zoomed by Rs 605 to conclude at Rs 31,955 per 10 gm from Friday’s closing level of Rs 31,350.
Pure gold (99.9 purity) skyrocketed by Rs 600 to close at Rs 32,095 per 10 gm from Rs 31,495.
Silver ready (.999 fineness) vaulted by Rs 1,825 per kg to finish at Rs 62,930 as compared to Rs 61,105 yesterday.
On the global front,bullion soared to multi-month highs in New York trading on Friday as speculators increased their positions on the back of weaker-than-expected US jobs data amid mounting optimism that the Federal Reserve will roll out fresh round of quantitative easing measures in its next policy meeting.
Apart from strong domestic retail and jewellery demand,speculators who are heavily betting on gold following its soaring global valuations,are mainly driving the prices here,traders said.
In New York,gold for December delivery rose by USD 34.90 to settle at USD 1,740.50 an ounce on the Comex division of the NYMEX late yesterday.
Silver for December contract strengthened by USD 1.02 to USD 33.69 an ounce.
Gold rallied to all-time high of Rs 32,450 per 10 gm in the national capital today on aggressive buying by stockists sparked by strong global cues amid seasonal demand.
The gold price spurted by Rs 540 to Rs 32,450 per 10 gm,a level never seen before as the metal in overseas markets rallied to six-month high after a government report showed the US added less jobs,boosting speculation the Federal Reserve will increase stimulus measures to shore up global growth.
The precious metal in New York shot up by USD 34 to USD 1,735.30 an ounce,its biggest gain since February 29.
In addition,sustained buying by stockists for the coming marriage season and investors parking their funds for quick gains also supported the upsurge.
With the general firming trend,silver shot up by Rs 2100 to Rs 61,800 per kg on increased offtake by industrial units and coin makers.
“The gold is linked with firming global cues and might see more peak levels in coming days on approaching festivals like Navratras and Diwali,” said Surender Jain,General Secretary of All India Sarafa Association.
Jain said the global rally came at a time when the market is already in stockists grip on marriage season demand and weak rupee making the metal import more costlier.
On the domestic front,gold of 99.9 and 99.5 per cent purity rallied by Rs 540 each to Rs 32,450 and Rs 32,250 per ten grams respectively. Sovereign followed suit and surged by Rs 200 to Rs 25,300 per piece of eight gram.
Silver ready recorded a handsome gain of Rs 2100 to Rs 61,800 per kg and weekly-based delivery by Rs 2225 to Rs 63,995 per kg. Silver coins spurted by Rs 4000 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.