Gold hits six-year high of Rs 32,625 per 10g over festive season demands

Continuing its upward march for yet another week, gold prices zoomed to hit over six-year high of Rs 32,625, and finally settled at Rs 32,550 per 10 grams on Saturday, supported by pick up in festive and wedding season demand by local jewellers.

Silver, on the other had, after moving in a narrow range on scattered buying and selling, finally ended flat at Rs 39,600 per kg.

Bullion traders said sentiments were also buoyant on firming trend in global markets where gold surged to over three-month high as the dollar eased and equity markets skidded to multi-months low.

Besides, a depreciating rupee, that made imports costlier also added to the uptrend in the gold prices.

 

Shifting of funds by investors towards the bullion from the melting equity markets too helped the precious metal to scale over six-year high.

Globally, gold ended the week at $1,233.80 an ounce as compared to previous week's $1,227.50. Silver also advanced to $14.76 an ounce from $14.68.

In the national market, gold of 99.9 per cent and 99.5 per cent purity commenced the week on a somewhat subdued note at Rs 32,220 and Rs 32,070 per ten grams on low demand from jewellers.

Later, it regained sheen on the back of pick up in demand from local jewellers and retailers in view of festive and wedding season to trade at over six-year high of Rs 32,625 and Rs 32,475 per 10 grams on Thursday.

Finally, it shed some grounds as demand from jewellers as well as retailers at higher levels faded and finally ended the week at Rs 32,550 and Rs 32,400 per 10 grams, still showing a rise of Rs 280 over previous week's closing of Rs 32,270 and Rs 32,120.

Sovereign gold, however, traded in a tight range on scattered support and ended the week flat at RS 24,700 per piece of 8 grams.

Silver after moving between Rs 39,500 and Rs 39,750 per kg, ended the week flat at Rs 39,600 per kg but silver weekly based delivery finished lower by Rs 85 to Rs 38,710 per kg.

Silver coins were maintained a steady trend at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.