Gold arrests 4-day fall on buying, global cues

Gold arrests 4-day fall on buying, global cues
PTI
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First Published: Tue, Sep 22 2009. 07 31 PM IST
Updated: Tue, Sep 22 2009. 07 31 PM IST
New Delhi: Snapping a four-day fall, gold prices spurted by Rs115 to Rs16,060 per ten grams in the national capital on Tuesday on buying at attractive low levels amid firm global cues.
Buying by stockists and jewellery fabricators increased on fears that the metal might become more costly due to the approaching festival of Diwali.
A steep rise in gold prices in the overseas markets fuelled the uptrend further. The metal rose after four days in London as a sliding dollar augmented demand for the precious metal as an alternative investment.
The US currency fell on speculation that the G-20 leaders meeting in Pittsburgh on Thursday will call for a reduction in global trade imbalances.
“The precious metals are more co-related with the international trend and gaining fancy of general investors,” Sheel Chand Jain of All India Sarafa (Bullion) Merchant Association said.
He said the prices were likely to pick up further ground on approaching festival of Diwali when gold consumption peaks.
The market experts feel the prices might pierce through the crucial Rs17,000 level once the buying for the Diwali festival picks up.
Retailers normally buy gold and silver coins as offerings to god and gifting purposes during marriages.
Silver coins managed to hold its highest levels in restricted small deals. The coins were traded at Rs31,900 for buying and Rs32,000 for selling of 100 pieces.
Silver ready spurted by Rs600 to Rs26,900 (rpt) Rs26,900 per kg and weekly-based delivery by Rs180 to Rs27,400 per kg.
Standard gold and ornaments shot up by Rs115 each at Rs16,060 and Rs15,910 per 10 gram respectively. Sovereign also rose by Rs50 to Rs12,950 per piece of eight gram.
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First Published: Tue, Sep 22 2009. 07 31 PM IST
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