Gold stays on an upward curve, scales 2-year high

Surging for the second day, gold prices shot up by Rs 225 to Rs 30,350 per 10 grams, its highest since May 10, 2014, at the bullion market today, tracking a firming trend overseas and helped by jewellers’ buying to meet wedding season demand. Silver also zoomed Rs 510 to Rs 41,550 per kg due to increased off-take by industrial units and coin makers.

Traders said sentiment was bolstered as gold had the biggest gain in a week after a report showing slow jobs growth weakened the case for the US Federal Reserve to raise interest rates, increasing appeal for precious metals. Gold in New York, which mostly determines the price trend in the Indian market, climbed 0.79 per cent to USD 1,287.70 an ounce and silver by 0.75 per cent to USD 17.44 an ounce in yesterday’s trade.

Moreover, persistent buying by jewellers, an offshoot of ongoing wedding season demand, fuelled the uptrend, they said. In the national capital, gold of 99.9 per cent and 99.5 per cent purity climbed by Rs 225 each to Rs 30,350 and Rs 30,200 per 10 grams, respectively, its highest level in almost two years.

The precious metal had edged up by Rs 25 yesterday. Sovereign, however, held steady at Rs 23,300 per piece of eight grams. Silver ready too soared Rs 510 to Rs 41,550 per kg and weekly-based delivery by Rs 400 to Rs 41,730 per kg. Silver coins, however, continued to be traded at previous level of Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.