Gold surges Rs 305, silver zooms Rs 1,000/kg on global cues

Gold regained sheen with its price surging by Rs 305 to over 7-week high of Rs 27,355 per 10 grams at the bullion market here today, tracking a firm global trend along with brisk buying by jewellers to meet wedding demand.

Silver also spurted by Rs 1,000 to Rs 37,500 per kg on increased offtake by industrial units and coin makers.

Bullion traders attributed the sharp rise in gold prices to firm global cues where it rebounded from five-week low.

Speculation that the US Federal Bank may wait longer before raising rates weakened the dollar to a seven-week low, boosting demand for gold.

Besides, increased buying by jewellers in the local market to meet marriage season demand supported the gains in India.

Gold in New York, which normally sets price trend on the domestic front, shot up by 1.80% to $1,201.70 an ounce and silver by 4.09% to $16.40 an ounce in yesterday's trade.

In the national capital, gold of 99.9% and 99.5% purity spurted by Rs 305 each to Rs 27,355 and Rs 27,205 per 10 grams, respectively, a level last seen on March 2.

Sovereign, however, remained steady at Rs 23,700 per piece of eight grams.

Following gold, silver ready recorded significant jump of Rs 1,000 to Rs 37,500 per kg and weekly-based delivery by Rs 875 to Rs 37,055 per kg.

Silver coins also spurted by Rs 1,000 to Rs 56,000 for buying and Rs 57,000 for selling of 100 pieces.