Gold prices rise to six-year high on festival season demand

Globally, gold shed 0.06% to $1,233.20 an ounce and silver by 0.03% to $14.82 an ounce in New York on Friday. Photo: iStock

New Delhi: Gold strengthened for the sixth straight week and gathered further grounds to hit an almost six-year high of Rs 32,780 and ended at Rs 32,650 per 10 gram at the bullion market, amid pick-up in buying activity ahead of Diwali.

Silver, however, lacked necessary buying support and shed some grounds.

Bullion traders said persistent buying by ornament makers, triggered by upcoming festival and wedding season demand lifted gold prices to an almost six-year high of Rs 32,780 per 10 gram.

Globally, gold after moving both ways, ended the week a shade lower at $1,233.20 an ounce, against previous week’s $1,233.80. Silver, too, ended almost flat at $14.82 an ounce.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity commenced the week steady at Rs 32,550 and Rs 32,400 per 10 gram, respectively, on scattered support.

Later, on pick-up in buying activity, driven by upcoming festivals, it surged to trade at a near six-year high of Rs 32,780 and Rs 32,630 per 10 gram, before finally settling higher by Rs 100 each at Rs 32,650 and Rs 32,500, respectively. This is the highest level since 29 November 2012, when the precious metal had closed at Rs 32,940.

In contrast, silver ready, after shuttling both ways on alternate bouts of buying and selling, finally ended the week at Rs 39,530 per kg, down Rs 70. Silver weekly-based delivery, however, managed to close higher by Rs 110 at Rs 38,820 per kg on speculative activity.

On the other hand, silver coins strengthened by Rs 1,000 to Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces on increased demand ahead of Diwali.

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