Gold prices on Wednesday soared by Rs650 to Rs27,470 per ten gram in the bullion market here on strong seasonal demand and firm trends in global markets. Silver also rose sharply by Rs1,600 to Rs38,400 per kg on increased offtake by industrial units and coin makers.
A fall in rupee value against the US dollar and increased buying by jewellers and retailers amid ongoing wedding season lifted prices of the precious metal, bullion traders said. A cheaper rupee makes imports of the metal costlier.
The rupee was trading weak at 62.05 against the US dollar at the forex market. Gold surged over $ 28 to a six-week high of $1,238.32 an ounce in New York on Tuesday as weakening of the dollar and retreat in global equities raised demand for the bullion as an alternative investment.
Silver also surged 5.2 per cent to $17.12 an ounce in New York on Tuesday.In Delhi, gold of 99.9 and 99.5 per cent purity zoomed up by Rs 650 each to Rs 27,470 and Rs27,270 per ten grams respectively. It had gained Rs170 on Tuesday.Sovereign traded Rs100 higher at Rs23,800 per piece of eight gram. Following gold, silver ready spurted by Rs1,600 to Rs 38,400 per kg and weekly-based delivery by Rs1,815 to Rs38,615 per kg.Silver coins shot up by Rs1,000 to Rs 63,000 for buying and Rs64,000 for selling of 100 pieces