Gold prices move up on firm buying, overseas trend

Pure gold (99.9 purity) also rose by a similar margin to end at Rs 26,340 per 10 grams from Rs 26,300. Gold prices rose further at the domestic bullion market on sustained offtake from jewellery stockist and retailers amid firm overseas trend.

Silver also surged owing to increased demand from industrial users.

Standard gold (99.5 purity) gained Rs 40 to close at Rs 26,190 per 10 grams from Friday’s closing level of Rs 26,150.

Pure gold (99.9 purity) also rose by a similar margin to end at Rs 26,340 per 10 grams from Rs 26,300.

Silver (.999 fineness) jumped by Rs 155 to finish at Rs 36,350 per kg compared to Rs 36,195 yesterday.

On the global front, Gold prices were higher at the London spot market yesterday, as dollar softened somewhat following worse-than-expected jobs data out of the US.

The US markets remained closed yesterday for Independence Day.

Spot gold was up at USD 1,167.60 a troy ounce in early European trade and silver up by USD 15.695 an ounce.

Last week’s trend:

Tracking a weak trend overseas and slackened demand from jewellers at domestic spot markets, gold continued to slide for the second straight week to hit three-month low of Rs 26,500 per ten grams at the bullion market.

Also, a firm rupee that strengthened to close at two-month high of 63.44 against the dollar, making imports cheaper, too put pressure on the yellow metal prices.

Silver also eased on reduced offtake by industrial units.

Slackened buying by jewellers and retailers at domestic spot markets also kept pressure on gold prices.

In New York, gold dropped 0.6 per cent and silver 0.7 per cent this week, affecting precious metals’ prices in domestic market.

Meanwhile, the government reduced marginally the import tariff value of gold to USD 382 per 10 grams and of silver to USD 516 per kg, considering weak global price trend in the wake of Greek debt crisis.

For last fortnight, the tariff value of gold was fixed at USD 385 per 10 grams and silver at USD 519 per kg.

In the national capital, gold of 99.9 and 99.5 per cent purity started the week on a better note at Rs 26,950 and Rs 26,800 per ten grams on scattered buying support.

Later, it plunged to over three-month low of Rs 26,500 and Rs 26,350 before ending at Rs 26,550 and Rs 26,400 per ten grams, showing a fall of Rs 160 each.

Sovereign, however, moved in a narrow range throughout the week and settled unaltered at Rs 23,300 per piece of 8 grams.

Silver ready after moving both ways on alternate bouts of buying and selling, finally finished lower by Rs 200 at Rs 36,200 per kg and silver weekly-based delivery by Rs 285 at Rs 35,680 per kg during the week.

On the other hand, silver coins moved narrowly and concluded at previous level of Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.