It seems bullion has again turned bullish. With the rupee strengthening against the US dollar, gold prices have shot up in the domestic market.
It seems bullion has again turned bullish. With the rupee strengthening against the US dollar, gold prices have shot up in the domestic market. On Friday, prices of the yellow metal crossed Rs28,000 per 10 gm and that of silver rose past Rs55,000 level. The rupee, which has been appreciating in value, closed just below Rs50 to a dollar. This pushed up the prices of precious metal in the domestic market.
On Thursday, the yellow metal closed at Rs28,250 per 10 gram, having gained Rs550 over its price in the city the previous day. Silver closed at Rs55,200 per kg, up by Rs1,300 against Wednesday’s closing in Ahmedabad.
In Mumbai, too, price of pure gold (of 99.9 per cent purity) jumped by Rs640 to close at Rs28,010 per 10 grams. On Wednesday it had traded at Rs27,370 per 10 gram. Silver shot up by Rs 1,520 per kg to close at Rs56,060 on Thursday from Rs54,540 a day earlier.
Meanwhile, in Delhi, gold surged by Rs535 to close at Rs28,305 per 10 gram; silver followed suit and rose by Rs1,770 to Rs56,970 per kg. In overseas market, gold climbed on a weaker dollar and fears of inflation after the US Federal Reserve pledged to hold interest rates near zero until the end of 2014. In London, spot gold was traded at around $1,720 an ounce.
At the same time, due to the weakening of the dollar in global markets and strong capital inflows into rising local stock markets, the rupee zoomed by 77 paise to close at a near 12-week high of 49.31. "Earlier, due to the depreciating rupee, gold prices had fallen. Now, as the rupee is appreciating, the prices of yellow metal have started climbing. This has marginally affected demand in the retail market. However, the demand for gold jewellery for marriages is still high," said city-based bullion trader and analyst, Girish Choksi.
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