Weekly review: Gold rises Rs 640, closes at Rs 27,675
Mumbai: A massive buying spree lifted the precious gold to hit multi-month peak and ended above Rs 27,000 per 10 gram mark during the week after the government's decision to raise import duty on the shiny-metal.
Robust demand from stockists and jewellery makers mainly fuelled a frenzied rally in gold fearing prices will rise substantially following the Centre's latest move to hike import duty to 8 percent from 6 percent in a bid to rein in demand in view of widening current account deficit.
Sliding rupee valuations alongside retail investment off-take amid buoyant global cues too supported the overall sentiment.
However, a modest week-end profit-taking took some sheen out the metal.
On the other hand, industrial metal, silver succumbed to aggressive fag-end unwinding from speculators and traders to finish below the Rs 45,000 per kg level.
Globally, gold suffered a major setback, plunging sharply below the key important USD 1,400 an ounce mark spooked by heavy sell-off from hedge funds and investors after better-than-expected US jobs data bolstered the dollar demand amid heightened speculation that the Federal Reserves will scale back its bullion-friendly bond-buying program earlier than expected.
Silver also whipped sharply on back of speculative selling-pressure.
In New York, gold for August delivery slipped to USD 1,383 an ounce from 1,393 last weekend. Silver for July contract tanked to USD 21.74 an ounce as compared to USD 22.24 previously.
In domestic market: Standard gold (99.5 purity) opened firm at Rs 26,950 and galloped to touch a high of Rs 27,795 before finishing at Rs 27,530 from preceding weekend's level of 26,900, exhibiting a massive gain of Rs 630, or 2.34 percent per 10 grams.
Pure gold (99.9 purity) resumed higher at Rs 27,080 and rallied further to hit a high of Rs 27,930 before ending at Rs 27,675 from its last weekend's level of Rs 27,035, revealing a smart rise of Rs 640, or 2.37 percent per 10 grams.
Silver ready (.999 fineness) commenced sharply higher at Rs 44,955 and surged further to Rs 45,525, but later stumbled back to conclude at Rs 44,200 from previous weekend's level of Rs 44,675, registering a loss of Rs 475, or 1.06 percent per kg.