This Article is From Oct 23, 2013

Gold prices soar on seasonal demand, global cues

Gold prices soar on seasonal demand, global cues
New Delhi:

Gold prices surged by Rs 305 to Rs 31,930 per 10 grams in the national capital on Wednesday on brisk buying by stockists and jewellers to meet the rising seasonal demand amid strong global trend.

Silver also zoomed by Rs 1,190 to Rs 50,200 per kg on increased offtake by industrial units and coin makers for coming festivals led by Diwali and ongoing marriage season.

Traders said brisk buying by stockists and jewellery fabricators to meet the rising festive and wedding demand mainly led an upsurge in gold and silver prices.

Silver and gold coins, which are normally used in Diwali prayers and as gifts in marriage celebrations, remained in keen demand. Firm global trend after payrolls in the US climbed, increasing speculation the Federal Reserve will maintain monetary stimulus to boost the economy, also influenced the sentiment, they said.

Gold in New York, which normally sets price trend on the domestic front, climbed 2 per cent to $1,342.60 an ounce, nearing the highest level since September 30. Silver also climbed 2.3 per cent to $22.79 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity surged by Rs 305 each to Rs 31,930 and Rs 31,730 per 10 grams, respectively, while sovereign held steady at Rs 25,300 per piece of 8 grams.

In a similar fashion, silver ready surged by Rs 1,190 to Rs 50,200 per kg and weekly-based delivery by Rs 700 to Rs 50,000 per kg. Silver coins, however, held steady at Rs 87,000 for buying and Rs 88,000 for selling of 100 pieces.