Gold jumps on investors' off-take; silver zooms to 4-month high

Business

oi-Staff

By Super

Published: Saturday, August 17, 2013, 9:31 [IST]

MUMBAI: Gold prices jumped to hit nearly seven-month high at the domestic bullion market following hectic stockists' and investors' offtake, well supported by the international markets.

After a brief overnight pause due to the Independence Day holiday, gold surged nearly 4 per cent and silver gained 6 per cent in today's trade.

The yellow metal witnessed a sharp climb as stockists weighed supply constraint in view of the ensuing festival and marriage seasons in the midst of incessant duty hike from the government, including RBI measures.

Silver also reflected the shiny metal's surge and zoomed to hit the four-month high, owing to heavy speculation and retraced Rs 49,000 per kg level on the back of rising industrial demand.

Standard gold of 99.5 per cent purity strengthened by Rs 1,175 to end at Rs 30,695 from Wednesday's closing level of of Rs 29,520 per 10 gm.

Pure gold of 99.9 per cent purity hardened by Rs 1,155 to finish at Rs 30,830 per 10 gm from Rs 29,675.

Silver ready (.999 fineness) shot-up by a hefty Rs 2,970 to conclude at Rs 49,980 per kg from Rs 47,010 previously.

"There is deep speculation going over the prized metals due to government curbs, supply problems and above all falling rupee valuations," dealers said.

Globally, gold touched two-month high, but eased as dollar firmed, though the metal witnessed investor short-covering amid strong physical demand from China.

In London, spot gold was bid higher at USD 1,360.01 an ounce in early trade and silver also bid up at USD 23.15 an ounce.

PTI