Gold extends gains on wedding demand, positive global cues

Gold extended gains for yet another week at the bullion market with prices rising by another Rs 140 to Rs 34,590 per 10 gram as local jewelers continued their buying activity to meet ongoing wedding season demand, coupled with positive cues from global markets.

Bullion traders said sentiment in the domestic market was upbeat on the back of increased buying by jewelers and retailers, driven by ongoing wedding season, leading to a rise in the prices of the yellow metal. Besides, depreciating rupee against the dollar supported the upside in the precious metal prices, they added.

On Monday, the Delhi bullion market remained closed in the wake of the terror attack on Central Reserve Police Force (CRPF) personnel in Jammu and Kashmir's Pulwama district. Gold prices climbed to an about 10-month high overseas as concerns over a global economic slowdown spurred a safe-haven demand.

Globally, gold futures to surged to USD 1,330.65 an ounce while silver at USD 15.88 an ounce in New York. Spot gold too surged to USD 1,328.90 an ounce after hitting a ten-month high of USD 1,341.02. The silver spot was at USD 16 an ounce.

In the national capital, gold of 99.9 per cent and 99.5 per cent purities commenced the week higher at Rs 34,680 and Rs 34,530 per ten grams, respectively, and rallied to Rs 34,830 and Rs 34,680 on unabated buying activity from jewellers and retailers amid positive global leads and ended with a rise of Rs 140 each at Rs 34,590 and Rs 34,440 per 10 gram, respectively.

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Sovereign gold followed suit and rose Rs 200 to end at Rs 26,600 per piece of eight gram. Silver ready settled the week higher by Rs 250 at Rs 41,500 per kg. It moved in the range of Rs 41,800 and Rs 41,360 per kg.

Silver for weekly-based delivery also ended the week higher by Rs 306 at Rs 40,268 after shuttling between Rs 40,551 and Rs 40,158 per kg. Silver coins, too, spurted by Rs 2,000 to Rs 83,000 for buying and Rs 84,000 for selling of 100 pieces.