Gold climbs on positive global cues, jewellers buying

Gold prices surged by Rs 155 to Rs 29,405 per 10 grams at the bullion market Monday, tracking a firming trend overseas amid fresh buying by jewellers.

However, silver remained under selling pressure and shed another Rs 100 to Rs 36,500 per kg.

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Bullion traders said a firming global trend where gold is headed for the biggest monthly advance in four years as a darkening global outlook spurred demand for a safe-haven assets, mainly buoyed the sentiment here.

Globally, gold added 0.4% to $1,228.65 an ounce in Singapore.

In addition, pick up in buying by jewellers as well as retailers to meet ongoing wedding season demand supported the upside in gold, they said.

Meanwhile, imposition of 1% excise duty on articles of jewellery excluding silver proposed in in Budget 2016-17.

In the national capital, gold of 99.9% and 99.5% purity recovered by Rs 155 each to Rs 29,405 and Rs 29,255 per ten grams, respectively. It had shed Rs 40 in the previous session.

Sovereign, however, held steady at Rs 23,000 per piece of eight grams.

On the other hand, silver ready fell further by Rs 100 to Rs 36,500 per kg and weekly-based delivery by Rs 180 to Rs 36,070 per kg.

Silver coins, however, spurted by Rs 1,000 to Rs 55,000 for buying and Rs 56,000 for selling of 100 pieces.