Gold prices hit six-year high on festive buzz and firm global cues

Gold prices rose on Thursday by '125 to trade at a six-year high of '32,625 per 10 gram. The prices were buoyed by a pick-up in festive and wedding season demand by local jewellers, amid firm global trends and a weakening rupee.

Silver, however, remained weak, and fell by Rs130 to Rs 39,600 per kg due to slackened demand from industrial units. Silver coins remained unaltered at Rs76,000 for buying and Rs 77,000 for selling of 100 pieces.

According to bullion traders, overseas sentiments were boosted as gold traded at over three-month high amid an easing dollar and slumping equities. Besides, weakness in the local currency also added to investor sentiments.

Globally, gold was trading at $1,234.20 an ounce in Singapore on Thursday. A pick-up in buying by local jewellers to meet seasonal demand at domestic spot markets, and diversion of funds from falling equity markets, also supported the uptrend, they added.
 

 

In New Delhi, gold of 99.99% and 99.5% purity rallied by Rs 125 each to Rs 32,625 and Rs 32,475 per 10 gram, respectively. This is the highest level since November 29, 2012, when it had closed at Rs 32,940 per 10 gram.

This is the third straight session of gains for gold, which has gained Rs405 since October 23. Sovereign gold, however, traded steady at Rs 24,800 per piece of eight gram.