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Gold prices all-time high at Rs32,950; dampen wedding season spirit

Monday, 26 November 2012 - 8:21pm IST | Place: New Delhi | Agency: PTI
Gold prices on Monday set a fresh all-time high on persisting demand from stockists and jewellers amid continuing weakness in rupee, dampening retail shopping in ongoing wedding season.

Gold prices on Monday set a fresh all-time high of Rs32,950 per 10 grams in Delhi on persisting demand from stockists and jewellers amid continuing weakness in rupee, dampening retail shopping in ongoing wedding season.

Gold of 99.9 and 99.5% purity added Rs100 each to Rs32,950 and Rs32,750 per 10 grams, respectively in the bullion market here. Sovereigns held steady at Rs25,650 per piece of eight grams.

While in Mumbai, gold surged by Rs155 to close at Rs32,640 per 10 grams, in Kolkata, it rose by Rs170 to Rs33,000. Similarly in Chennai, it gained Rs85 to Rs32,815 per 10 grams.

The prices in Delhi bullion market surpassed the previous record of Rs32,900 set on September 14.

Gold has become costlier by Rs550 in the last four trading days.

Traders attributed the upward trend in gold prices to weakness in rupee.

"Gold rates in the domestic market have increased mainly due to rupee depreciation against the strong dollar and higher demand for wedding jewellery," SMC Comtrade Chairman and Managing Director DK Aggarwal said.

Rupee on Monday declined for the fifth day in a row and lost 22 paise to close at 55.73 against the US dollar. A weak rupee will increase the import cost of gold.

India is the world's biggest consumer of gold.

The rise in domestic prices not not linked to global market where the precious metal on Monday rose marginally to USD 1,750 per ounce at New York, Aggarwal said.

They added that the trading sentiment has turned bullish on rising demand for the ongoing wedding season.

Also in the futures market, gold prices rose by Rs156 to Rs32,404 per 10 grams as speculators created fresh position, tracking a firm trend at spot market on the back of wedding season demand even as metal decline in overseas market.




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