Gold at Rs 29,000 on global cues, jewellers' buying

Rising for the second straight day, gold prices advanced by Rs 150 to regain the crucial Rs 29,000-mark per 10 grams at the bullion market today in tandem with a firming trend overseas and increased buying by jewellers at domestic spot market. However, silver eased by Rs 140 to Rs 38,760 per kg.

Bullion traders said a firming global trend where gold advanced for the first time in 10 days to snap its longest sell-off in more than a year as US consumer confidence unexpectedly fell and manufacturing gauges weakened, boosting demand for the metal as a store of value, mainly influenced sentiments here.

Globally, gold rose 0.4 per cent to USD 1,220.03 an ounce in Singapore. Besides, increased buying by jewellers and retailers at domestic spot market fuelled the uptrend in gold prices, they said. In the national capital, gold of 99.9 and 99.5 per cent purity rose by Rs 150 each to Rs 29,000 and Rs 28,850 per ten grams respectively. It surged by Rs 185 yesterday.

Sovereign, however, held steady at Rs 22,900 per piece of eight grams in limited deals. On the other hand, silver fell by Rs 140 to Rs 38,760 per kg and weekly-based delivery by Rs 175 to Rs 38,565 per kg. Silver coins, however, continued to be traded at previous level of Rs 66,000 for buying and Rs 67,000 for selling of 100 pieces.