Gold price snaps 6-week losing streak; ends at Rs 27,475
Mumbai: After nearly six weeks of descent, gold regained its shine following heavy demand from jewellery stockists as well as robust investment offtake on a strong rally in global markets.
Domestic sentiment turned extremely buoyant after the yellow metal soared to multi-week high overseas, triggered by a flurry of "safe haven" buying spree following fresh bouts of building geopolitical tensions in Iraq and disappointing US macro economic data.
A steep fall in rupee against dollar along with easing of import restrictions further influenced the price movements.
Gold gained momentum after a firm start and made strong come-back to reclaim the Rs 27,000 per 10 grams mark towards the fag-end.
The metal had lost a whopping Rs 3,550, or 11.77 percent, in the last six-week downtrend.
Silver also rallied on the back of hectic speculative demand to reclaim the Rs 42,000 per kg level.
On the global market front, the shiny metal strengthened further, benefiting from the growing turmoil in Iraq and geopolitical risk factors.
Gold for August delivery spiked to settle at USD 1,274.10 an ounce from last weekend's level of USD 1,252.50 on the comex division of the NYMEX.
Silver for July contract also moved up to settle at USD 19.655 an ounce as compared to USD 19.655 previously.Standard gold (99.5 purity) resumed modestly higher at Rs 26,610 and surged to finish at Rs 27,325 as compared to last Saturday's closing level of Rs 26,605, showing a gain of Rs 720, or 2.71 percent, per 10 grams.
Pure gold (99.9 purity) also commenced better at Rs 26,760 and rallied further to conclude at Rs 27,475 as against Rs 26,755 last weekend, showing a sharp rise of Rs 720, or 2.69 percent, per 10 grams.
Silver ready (.999 fineness) opened steady at Rs 40,865, but later soared to end at Rs 42,605 over its previous closing level of Rs 40,865, disclosing a massive gain of Rs 1,740, or 4.26 percent, per kg.