Gold rises for second day; up Rs 105 on buying interest
Zee Media Bureau
Gold price recovered by Rs 105 to Rs 26,190 in Chennai bullion market Friday on good buying by stockists, traders as well as local buying interest amidst marriage season off-take.
In contrast to gold, silver remained weak for the sixth day by losing Rs 405 to Rs 44,700 per kg on lack of buying support from industrial units and coin makers.
At the Multi Commodity Exchange MCX), gold for delivery in June rose by Rs 21 to Rs 25,700 per 10 grams. Silver for delivery in May however dropped by Rs 353 to Rs 43,278 per kg.
Gold in overseas markets, which normally set price trend on the domestic front, rose USD 24.80 or 1.78 percent to USD 1,416.80 per ounce after falling nearly 3 percent in Asian trade on Thursday and from its lowest in more than two years of USD 1,321.35, touched on Tuesday.
Meanwhile, jewellers like Gitanjali and P C Jewellers said people are buying more and sales have surged by up to 3 times as investors are trying to take advantage of 24 per cent fall in price from its Rs 32,975 peak in November 2012.
"Sales are strong. In last one week, sales in volume terms have risen by 35 per cent and value terms by 25 per cent. We expect prices to stablise at Rs 26000-27000 per ten grams," Gitanjali Group Chairman and Managing Director Mehul Choksi said.
Expressing same views, PC Jewellers Managing Director Balram Garg said: "Prices have increased slightly today but people are buying as they feel prices would again rise."
"Our sales have jumped by 3-4 times than the normal sales around this time. Cumulative sales from our 32 showrooms has increased to Rs 25-30 crore per day as against Rs 8-10 crore prior to the fall in prices," he said.
With Agency Inputs