Gold prices rise Rs 140 on festive buying, silver gains
Gold prices continued their upward move for the third straight day on Friday and advanced Rs 140 as local jewellers increased buying to meet festive demand
New Delhi: Gold prices continued their upward move for the third straight day on Friday and advanced Rs 140 as local jewellers increased buying to meet festive demand. Global gold prices, however, fell as equity markets firmed, but the metal traded near a more than 10-week high hit in the previous session. In Delhi, gold rates of 99.9% and 99.5% purity rose further by Rs 140 each to Rs 32,120 and Rs 31,970 per 10 grams, respectively. The precious metal had gained Rs 330 in the last two days. Sovereign remained unchanged at the previous level of Rs 24,600 per piece of eight grams.
Following gold, silver rates also went up by Rs 500 on fresh buying by industrial units and coin makers. Silver-ready spurted Rs 500 to Rs 39,500 per kg and weekly-based delivery rose Rs 435 to Rs 38,905 per kg. Silver coins too were in good demand and traded notably higher at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces as against previous level of Rs 73,000 and Rs 74,000, respectively.
In global markets, spot gold rate was down 0.4% at $1,218.86 an ounce after jumping about 2.5% on Thursday, its sharpest gain since June 2016, as a rout in equities sent investors rushing to safe-havens. US gold futures were down 0.4% at $1,222.30 an ounce. Gold has fallen more than 10% from a peak in April.
“Yesterday, investors were seeking a shelter to protect their investment, triggering safe-haven buying. Markets are slightly recovering now and the mood is starting to loosen up a little bit. We are also seeing a little bit of profit-taking in gold,” Reuters quoted Benjamin Lu, commodities analyst, Phillip Futures as saying. “Although gold has receded today, if it is able to push higher and break above $1,235 an ounce, it may change the trend and lead to a lot of short-covering.”
Global shares were having their best day in nearly a month on Friday as European and Asian markets recovered from a brutal selloff that still left them set for their worst week since February. After a partial recovery in Asian shares overnight, European stocks opened higher.
The Indian rupee was trading higher against the US dollar, tracking gains in local equity and Asian currencies markets, and ahead key inflation data due later in the day. At 3.03pm, the rupee was trading at 73.69 a dollar, up 0.58% from its Thursday’s close of 74.13. The currency opened at 73.80 a dollar.
With inputs from agencies
Editor's Picks »
- What to expect from Q3 results of IndiGo, SpiceJet, Jet Airways
- Forget privatisation, govt has hugged its banks tighter
- Flat profit, rising debt are growing worries for Reliance
- Q3 results: HUL growth off a high base shows it’s on a roll
- DCB Bank Q3 results: Small loans give big pain as farm, mortgages lift delinquencies