Gold logs weekly gain of Rs 650

Gold logs weekly gain of Rs 650 New Delhi: Gold prices rising to five week high of Rs 28,090 per 10 grams was the feature of trading on the bullion market during the past week driven by hike in import duty and firming global trend, while a fag-end selling minimised the gains.

Silver ended with moderate losses.

Besides, investors shifting their funds from melting equities to bullion and a strong dollar further influenced the market sentiment.

Marketmen said trading sentiment bolstered as government decided to increase import duty on gold from 6 percent to 8 percent to curb a record current- account deficit at a time when the World Gold Council predicts record quarterly demand for the metal in India.

They said a firming trend in overseas markets on strong dollar and and investors shifting their funds from melting equities to bullion also influenced the trading sentiment.

Gold in international markets gained as a private jobs report showed US companies hired less workers than projected in May, spurring speculation that the Federal Reserve will keep buying bonds.

Gold in New York, which normally sets the price trend on the domestic front here, rose to trade over USD 1,402.70 an ounce before settling down at USD 1,379.40 after employment in the US increased more than forecast in May, boosting concern that the Fed may scale back monetary stimulus.

In the national capital, gold of 99.9 and 99.5 percent purity commenced higher and scaled to five-week high of Rs 28,300 and 28,100 per 10 grams before the fag-end selling pulled it down to settle at Rs 28,000 and 27,800 per 10 grams respectively, still showing a rise of Rs 650 each. Sovereigns shot up by Rs 200 to Rs 24,200 per piece of eight grams.

However, silver ready climbed to Rs 45,100 before falling to end with a loss of Rs 520 at Rs 43,600 per kg and weekly- based delivery by Rs 540 to Rs 42,960 per kg. Silver coins rose by Rs 1,000 to Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces. It had climbed to Rs 80,000 during the week.

PTI