The yellow metal made fresh gains on the local bullion market rose for the fourth straight session at Rs100 to Rs28,180 per ten gram due to decline in crude oil prices and unsettlement in forex market. Silver also rose by Rs100 to Rs39,200 per kg on increased offtake by industrial units and coin makers.
" It is due to two reasons unsettlement forex market and decline in crude oil prices and when many commodities are not in favour than alternate commodity tend to rise," Gitanjali Group Chairman and Managing Director Mehul Choksi told The Pioneer. India Forex Analyst Prashant Jain said that "Global economy has been facing a downside risk with Europe and US printing negative inflation numbers and continued fall in the essential commodity prices. The crude oil prices tumbled due to global supply glut and falling demand amid the slowing world economic activity. These factors have surged the demand of safe heaven assets like gold, US 10 year treasuries and Japanese Yen."
Similarly Marketmen said apart from persistent buying by jewellers and retailers to meet ongoing wedding season demand, a firming global trend mainly kept the precious metal prices higher. Globally Gold rose advanced to the highest in almost five months as precious metals climbed on demand for a safe-haven amid concerns global economic growth is slowing.
Gold rose 1.5 per cent to $ 1,294.26 an ounce, the highest since August 28. Silver also rose 1.9 per cent to $ 18.02 an ounce, the highest since September 19. The International Monetary Fund made the steepest cut to its global growth forecast in three years in an outlook released late Monday in Washington. It said slowing growth almost everywhere except the US will more than offset the boost to expansion from the slump in oil prices.
In the national capital, gold of 99.9 and 99.5 per cent purity added another Rs100 each to Rs28,180 and Rs27,980 per ten gram respectively. The precious metal had gained Rs760 in the previous three sessions. Sovereign, followed suit and gained Rs100 to Rs24,000 per piece of eight gram. In line with overall overall trend, silver ready rose by Rs 100 to Rs39,200 per kg and weekly-based delivery by Rs 110 to Rs39,180 per kg. Silver coins spurted by Rs1,000 to Rs64,000 for buying and Rs65,000 for selling of 100 pieces.