Gold prices jump Rs650 on demand push, retake Rs31,000 level
New Delhi: Gold prices on Thursday took strength from a positive trend overseas by surging Rs650 per 10 grams to seize the Rs31,000 level, driven up by fresh local buying. But silver fell sharply by Rs350 to Rs41,500 per kg, mainly due to softening demand by industrial units and coin makers.
Tension still brews on the Korean front as North Korea is digging in its heels over the UN resolution and the sanction over its most powerful nuclear test, analysts said. Any major uncertainty, according to experts, is directly proportional to the appeal of safe haven assets. Simply put, the higher the turmoil, the greater the risk aversion, which pushes investors more towards safe asset classes, including gold. Bullion traders said robust demand from local jewellers as well as retailers too fed the rally in gold prices.
Globally, gold rose by 0.08% to USD 1,323.60 an ounce after hitting a two-week low of $1,318.96. Silver too edged up 0.03% to $17.75 an ounce in Singapore.
In the national capital, gold of 99.9% and 99.5% purity surged Rs650 each to Rs31,000 and Rs30,850 per 10 grams, respectively. The precious metal had lost Rs650 in the last two days. Sovereign continued to be traded at the previous level of Rs24,700 per piece of eight grams.
In contrast, silver ready dropped Rs350 to Rs41,500 per kg and weekly-based delivery cracked below the 41,000 mark by sliding Rs370 to Rs40,930 per kg. Silver coins, however, held steady at Rs74,000 for buying and Rs75,000 for selling of 100 pieces.