Gold prices surged for the fifth straight session on Wednesday, attributed to overseas gains and also supported by moderate buying on Dhanteras-a day considered auspicious to buy gold. In Mumbai, gold of .995 and .999 purity rose Rs 275 to close at 10,685 per 10 gram and 10,735 per 10 grams, respectively. Silver of .999 purity closed stronger by Rs 1,055 at Rs 20,740 per kg. “There was moderate buying on Wednesday as high prices kept customers away. Sales are expected to pick up in the next two days,” said a bullion dealer. In London, the yellow metal raced to a series of fresh 28-year high near the $850-an-ounce mark as the dollar sank against major currencies and record oil prices stoked inflation jitters. Prices in India — the largest bullion market — are driven by international prices. Bullion dealers said they expected the demand to shift more towards gold coins and bars this season, as the bullish price trend was expected to last for three to four months. According to the World Gold Council data, last year, 186 tonnes of gold coins and bars were sold in the country, a rise of 34 per cent over the previous year. Gold, which has risen more than 25 per cent this year, last hit an all-time high of $850 in January 1980.
