Weekly report: Gold price surges

Sep 28 2013: Gold price surges to three-week high at Rs 31,200 per ten grams was the most prominent feature of trading at the bullion market during the past week, mainly on fag-end brisk buying by stockists driven by strong global trend.

Silver also ended higher on increased offtake by industrial units and coin makers.

Traders said fag-end brisk buying by stockists to meet the upcoming festive season demand amid a strong global trend led to an upsurge in gold prices to reach a three-week high.

Increased offtake by industrial units and coin makers helped silver prices to close higher, they said.

Gold in global markets, which normally set price trend on the domestic front, rose to USD 1,345.20, the highest since September 20 in New York.

At the domestic front, gold of 99.9 and 99.5 per cent purity commenced lower at Rs 30,250 and Rs 30,050 and slipped further to Rs 30,200 and Rs 30,000 per ten grams, respectively on sluggish demand due to ongoing inauspicious fortnight of "Sharadhs".

However, due to a fag-end buying by stockists following an upsurge in the global markets, the yellow metal recovered to close at Rs 31,200 and Rs 31,000 per ten grams, the levels last seen on September 11, showing gains of Rs 700 each.

Sovereign, however, after moving between gain and losses on alternate bouts of buying and selling, settled at previous level of Rs 25,100 per piece of eight gram.

In volatile movements, silver ready ended higher by Rs 180 to Rs 49,680 per kg and weekly-based delivery by Rs 100 to Rs 49,600 per kg this week.

Silver coins also settled higher by Rs 1,000 to Rs 86,000 for buying and Rs 87,000 for selling of 100 pieces.

Courtesy: The Financial Express