Gold gains Rs25 ahead of festive season amid firm global cues

Gold prices rose by another Rs25 in the bullion market today on the back of strong demand ahead of the festive season, coupled with a firming global trend. G old of 99.99% and 99.5% purity rose by Rs25 each to Rs18,425 and Rs18,325 per ten grams, respectively, following a Rs155 gain in the previous session.

 

However, sovereigns held steady at Rs14,700 per piece of eight grams in restricted buying at higher levels.

 

The bullish trading sentiment on gold at home mirrored the increased demand for the precious metal in global markets amid a continuous fall in the value of the US dollar. Furthermore, speculation that the US Federal Reserve will step up buying of bonds to prop up the American economy also pushed up gold prices.

 

Gold in overseas markets, which normally sets the price trend on the domestic front, added $3 to $1,208.40 an ounce.

 

In line with the general firming trend, silver ready added Rs105 to Rs29,475 per kg, while weekly-based delivery gained Rs65 to Rs29,195 per kg on the back of steady demand from industrial units and coin-makers.

Meanwhile, silver coins continue to be traded at around the previous level of Rs34,500 for buying and Rs34,600 for selling of 100 pieces.