New Delhi: Gold prices today hit a one-month high, buoyed by buying by local jewellers amid festive buzz. In Delhi, gold prices hit the ₹ 31,000 mark today by gaining ₹ 100, according to PTI. Gold prices had gained ₹ 280 in previous two days. Silver prices also advanced by ₹ 50 to ₹ 38,300 per kg due to increased offtake by industrial units and coin makers. Gold of 99.9 and 99.5 per cent purity in Delhi climbed ₹ 100 each to ₹ 31,000 and ₹ 30,750 per 10 gram, respectively.
Sovereign however remained unaltered at ₹ 24,500 per piece of 8 gram in limited deals. Following gold, silver ready strengthened by ₹ 50 to ₹ 38,300 per kg and weekly-based delivery by ₹ 150 to ₹ 37,150 per kg. On the other hand, silver coins maintained a steady trend at ₹ 72,000 for buying and ₹ 73,000 for selling of 100 pieces.
Domestic gold prices rose today despite a weak trend overseas. Traders said increased buying by local jewellers to meet festive season demand at domestic spot market mainly kept gold prices higher, but a weak trend overseas capped the rise.
According to jewelers, Kerala floods may however impact wedding season gold demand. Jewellers in Kerala, India’s biggest gold-buying state, expect sales to drop during the peak festival and wedding season after heavy rains and floods caused more than $3 billion of damage.
In India, the monthly per capita expenditure on gold ornaments was the highest in Kerala, according to the Ministry of Statistics and Programme Implementation’s 2011-2012 survey. The country’s key festival and wedding season runs from the end of August to December.
Globally, gold prices inched lower today as the dollar recovered slightly. Spot gold was down 0.2 percent at $1,203.67 per ounce. It had climbed 1.7% on Friday in its biggest one-day percentage gain since May 2017. US gold futures were down 0.2 percent at $1,210.60 an ounce.
“Gold faces headwinds from the fact that the dollar rally, old though it may be, is still alive, although facing threats from domestic political uncertainty," said Nicholas Frappell, general manager at Australia-based ABC Bullion.
The dollar index, which tracks the greenback against a basket of six major currencies, was up 0.1%.
With Agency Inputs