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Gold at one-week high on seasonal demand, oversees trend

Bullion traders said sentiment bolstered as gold climbed in global markets after the US Federal Reserve again left interest rates unchanged, weakening the dollar and raising demand for the precious metals as a safe-haven.
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Gold regained its sheen to close at over one-week high of Rs 26,675 at the bullion market during the week, tracking bullish global cues and pick up in buying by jewellers to meet wedding season demand at domestic front.

Silver also rallied on day-to-day increased offtake by industrial units and coin makers.

Bullion traders said sentiment bolstered as gold climbed in global markets after the US Federal Reserve again left interest rates unchanged, weakening the dollar and raising demand for the precious metals as a safe-haven.

Globally, gold settled at $1,137.80 an ounce, after touching $1,141.50, the highest since September 2 in New York.

Increased buying by jewellers and retailers, triggered by ongoing festive and wedding season demand too supported the uptrend in the precious metals, they said.

Meanwhile, the government had slashed the import tariff value on gold and silver to $359 per 10 grams and $470 per kg, respectively.

In the first fortnight of this month, the tariff value on imported gold was $369 per 10 grams and on silver it was $471 per kg.

The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. The tariff value is revised on a fortnightly basis.

In the national capital, gold of 99.9 and 99.5 per cent purity commenced the week on a steady note at Rs 26,360 and Rs 26,210 per ten grams, respectively but soon met with resistance and slipped to Rs 26,325 and Rs 26,175 per ten grams.

Later, in the mid-week it staged a strong come back on the back of bullish global cues and surged to close at over one week high of Rs 26,675 and Rs 26,525 per ten grams, respectively, a level last seen on September 9, showing a handsome gains of Rs 315 each.

Sovereign was also seen in demand and climbed by Rs 200 to Rs 22,300 per piece of eight gram.

Tracking gold, silver ready regained the psychological level of Rs 35,000 to close at Rs 35,900 per kg, showing a hefty rise of Rs 1,000.

Silver weekly-based delivery followed suit and revise Rs 36,000 to finish at Rs 36,070 per kg, revealing an on balance gain of Rs 1,120.

Silver coin also spurted by Rs 2,000 to Rs 52,000 for buying and Rs 53,000 for selling of 100 pieces on upsurge in demand