Gold glitters on strong global cues, jewellery buying

A weakening dollar, safe haven buying and increasing jewellery demand by local jewellers contributed to the gold rally.

Gold surged by Rs 350 to Rs 31,650 per ten gram at the bullion market today, tracking a firm trend overseas amid increased buying by local jewellers.

In the national capital, gold of 99.9% and 99.5% purity rallied by Rs 350 each to Rs 31,650 and Rs 31,500 per ten gram, respectively. (REUTERS)

Silver also spurted by Rs 720 to Rs 39,970 per kg backed by increased offtake by industrial units and coin makers.

Bullion traders attributed the rally in gold to a firm trend overseas as the dollar weakened, raising demand for the precious metal as a safe haven.

Globally, gold rose 0.27% to $1,353.90 an ounce and silver by 0.48% to $16.92 an ounce in Singapore.

Besides, persistent buying by local jewellers to meet the ongoing wedding season demand at domestic spot market, too fuelled the uptrend, they said. In the national capital, gold of 99.9% and 99.5% purity rallied by Rs 350 each to Rs 31,650 and Rs 31,500 per ten gram, respectively.

Sovereign however remained unaltered at Rs 24,800 per piece of eight gram.

Following gold, silver ready also recorded a sharp gain of Rs 720 to Rs 39,970 per kg and weekly-based delivery by Rs 385 to Rs 38,670 per kg.

Silver coins however remained flat at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.