Gold surges to 7-month high on firm global cues, rising demand

Gold surges to 7-month high on firm global cues, rising demand

Mumbai: Gold prices on Thursday surged to a seven-month high to Rs15,700 per 10 gram, close to its record high levels in February, in the national capital on brisk buying by traders for the festival season, and firm cues from global markets amid falling stocks.

The precious metal spurted by Rs270 at Rs15,700 per 10 gram, a level last seen on 18 February, just Rs50 less than the record level seen on the next day.

Traders said, the market witnessed strong demand from jewellery makers and stockists, who have been making purchases to meet demand in the ensuing festival and marriage seasons.

“We have plenty of orders for jewellery in hand and have to purchase it before the fortnight of Sharads begin," said Delhi-based jeweller Rakesh Anand. Sharads is a period of 15 days considered inauspicious for buying valuables by Hindus.

Demand would once again pick up around festivals such as Diwali in September and October, when people traditionally like to make fresh purchases of gold, Anand said.

Reports of the metal rising in overseas markets to three- month high on weak dollar and global equity markets, further fuelled buying among investors, who consider it a safe investment option, they added.

“Falling stock markets in last four trading days left no other option for investors but to park their funds in bullion," said a leading bullion merchant Ravi Jalan.