Gold advance to 9-week high on wedding demand, global cues

Gold prices surged to nine-week high in the national capital today on rising wedding season demand and weakening rupee amid a firming global trend. The gold advanced by Rs 110 to Rs 32,560 per 10 gm, a level last seen on September 17. Silver also rose by Rs 250 to Rs 62,500 per kg on industrial buying. Traders said wedding season demand along with higher global trend after investors holdings rose to an all-time high and central banks added to reserves as Europe's debt crisis persisted, mainly bolstered the sentiment.

Also Read: Buy MCX Gold Dec around Rs 31950; target Rs 32200: Geojit

They said the dollar-priced metals also rose as Indian rupee fell to nearly three-month low against the American currency made the import costlier. Gold in global markets, which normally set price trend on the domestic front advanced 2.20 dollar to 1731.90 dollar an ounce and silver by 0.21 per cent to 33.45 dollar an ounce in Singapore. On the domestic front, gold of 99.9 and 99.5 per cent purity gained Rs 110 each to Rs 32,560 and Rs 32,360 per ten grams respectively. The metal had gained Rs 50 yesterday. Sovereign followed suit and rose by Rs 50 to Rs 25,600 per piece of eight gram.

Similarly, silver ready rose further by Rs 250 to Rs 62,500 per kg and weekly-based delivery by Rs 285 to Rs 62,400 per kg respectively. The white metal had gained Rs 250 in the previous session. Silver coins, which used for gifting purpose during the marriage season, surged by Rs 1000 to Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.