New Delhi: Buoyed by a pick-up in festive season demand, gold prices today edged closer to six-year high. Gold rates today rose by 70 to 32,620 per 10 grams ahead of the old upcoming Dhanteras and Diwali festivals. But silver prices declined due to tepid demand by industrial units. In Delhi, gold of 99.99 and 99.5% purity gained 70 each to 32,620 and 32,470 per 10 gram, respectively. Bullion traders cited a rise in gold coin demand ahead of Diwali. Last week, gold prices had hit an over six-year high of 32,625 per 10 grams.

Meanwhile, sovereign gold today rose by 100 to 24,900 per piece of eight gram. On the other hand, silver ready prices went down by 260 to 39,240 per kg and silver weekly-based delivery by 388 to 38,345 per kg. Silver coins, however, remained unchanged at 75,000 for buying and 76,000 for selling of 100 pieces.

In global markets, gold prices fell today as US dollar firmed on renewed fears US-China trade war and worries over slowing global economic growth. A stronger dollar makes bullion more expensive for holders of other currencies. Spot gold was down 0.4% at $1,224.80 an ounce. US gold futures also edged lower.

Global gold prices are up 6% since mid-August and some analysts expect gold prices to rise further. “There is a little bit of pressure from the dollar for now. But, overall gold prices look fundamentally supported. Market sentiment is still very cautious. We feel upside potential for gold at $1,255 is highly possible," said Benjamin Lu, a commodities analyst with Phillip Futures. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.7% to 24.27 million ounces on Monday, the highest in nearly two months.

Meanwhile, Goldman has kept its three, six and 12-month forecasts for gold at $1,250, $1,300 and $1,350.

In India, domestic gold prices have rallied to six-year highs amid higher global prices and a depreciation of the rupee, which increases the imported price of the precious commodity. However, some traders fear that higher prices could hit demand for gold during this festive season.

With Agency Inputs