Gold crosses Rs.31,000 mark after 29 months

The Dollar Business Bureau

Gold prices surged up at 29-month high to touch Rs.31,340 per 10 grams. The prices of the precious metal increased Rs.540 in the bullion market on Saturday. This is mainly due to the positive trend in the international market and jewellers buying more in the Indian spot market.

On the other hand, silver continued to carry forward its losses because of the low demand from the coin makers. Silver prices dipped further Rs.220 to reach Rs.47,080 per kg. However, week-based silver delivery has improved by Rs.680 to Rs.47,480 per kg due to speculative buying.

According to the bullion traders, sentiments have strengthened after gold prices grew in global markets amid weak dollar cues. Also the US economy has grown less than the expectations during the second quarter, which has enhanced the demand for the assets such as gold.

Gold increased 1.2% in the international market at $1,357.50 per ounce in New York on Friday. The global prices have surged up 2.8% in July. With the rise in demand for gold jewellery, there was continuous buying by the jewelers in the spot market of the country. This has also supported the upsurge, the traders said.

In New Delhi, gold of 99.9% and 99.5% purity rose Rs.540 each to Rs.31,340 and Rs.31,190 per 10 grams respectively. This level has last seen on February 26, 2014, when the price was Rs.31,530. Sovereign gold has also gone up by Rs.300 to Rs.24,300 per piece of eight grams.