Gold price retraces Rs 31,000 level; zooms by Rs 425
New Delhi: Gold zoomed by Rs 425 to Rs 31,150 per ten grams in the national capital Wednesday on frantic buying by stockists and investors on strong global cues.
Silver also surged by Rs 700 to Rs 45,000 per kg on increased offtake by jewellers and industrial units.
Sentiments turned bullish after gold recorded the biggest advance since mid-October as the dollar weakened, boosting the appeal of the precious metal as an alternative investment, traders said.
Gold in New York, which normally sets price trend on the domestic front, jumped 2.2 percent to USD 1,261.10 an ounce, the biggest gain since October 17. Silver also climbed 3.1 percent to USD 20.31 an ounce.
Besides, frantic stockists buying for the ongoing marriage season and investors shifting funds from weakening equity to rising bullion further supported the uptrend, they said.
On the domestic front, gold of 99.9 and 99.5 percent purity surged by Rs 425 each to Rs 31,150 and Rs 30,950 per ten grams, respectively. Sovereign followed suit and rose by Rs 100 to Rs 25,300 per piece of eight grams.
In a similar fashion, silver ready spurted by Rs 700 to Rs 45,000 per kg and weekly-based delivery by Rs 970 to Rs 45,600 per kg. The white metal had gained Rs 830 yesterday.
Silver coins also skyrocketted by Rs 3,000 to Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces on upsurge in marriage season demand.