Gold storms ahead on festival frenzy, reclaims Rs 32,000 mark

Mumbai: Riding an unprecedented buying frenzy, precious gold reclaimed the psychological Rs 32,000 per 10/gm mark at the domestic bullion market here amid swelling festive and wedding-related off-take.

Demand for the shiny metal has been witnessing a massive surge ever since the festive season began outstripping supply due to shortage of gold following restrictions on consignment imports, leading to a sharp spurt in domestic prices, bullion traders commented.

 The industrial metal silver rebounded sharply on back of aggressive speculation buying coupled with firm industrial buying support.

Standard gold of 99.5 per cent purity rose by Rs 175 to conclude at Rs 32,015 per 10 grams from Friday’s closing level of Rs 31,840.

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Pure gold of 99.9 per cent purity also climbed by a similar margin to end at Rs 32,165 per 10 grams as against Rs 31,990.

Silver ready (.999 fineness) jumped by Rs 360 to finish at Rs 50,540 per kilo from Rs 50,180 yesterday.

On the global front, gold maintained its upbeat momentum to reclaim one-month high supported by safe haven demand on growing expectations that the Federal Reserve will delay tapering its stimulus program and lacklustre US macro data.

Gold December delivery settled high at $1.352.50 an ounce on the Comex division of the NYMEX late yesterday, while silver December contract closed lower at $ 22.64 an ounce.

PTI