Gold Extends Gains On Seasonal Demand, Global Cues

NEW DELHI: Gold prices maintained its upward journey for the second day with a gain of another Rs 180 to Rs 27,300 per 10 gm, supported by increased buying and a firming trend overseas.

Silver also moved up by 400 to 37,600 per kg on increased offtake by industrial units and coin makers.

Traders said increased buying by jewellers and retailers, triggered by wedding season demand and a firming global trend, mainly kept precious metals higher.

Globally, the precious metal advanced to the highest level in almost two weeks, after China announced a second interest-rate cut in three months and the U.S. reported a slower pace of economic expansion than estimated, traders said.

Gold in Singapore, which normally sets price trend on the domestic front, rose 0.8 per cent to USD 1,223.34 an ounce, the highest since February 17 and silver by 0.9 per cent to $16.74 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity flared up by Rs 180 each to 27,300 and 27,100 per 10 gram, respectively. It had gained 120 in the previous session.

Sovereign, however, held steady at 23,700 per piece of eight gram on some support.

In line with a general firm trend, silver ready rose by 400 to 37,600 per kg and weekly based delivery by 530 to 37,085 per kg.

Silver coins spurted by 1,000 to 60,000 for buying and 61,000 for selling of 100 piece on s3 in wedding season demand.

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