Surpassing all previous records, gold skyrocketed to an high of Rs31,725 per ten grammes in the national capital on Saturday on frantic buying by stockists, sparked by a steep rise in global prices.
Delhi led the rally, rising the most by Rs550 to Rs31,725 per ten grammes followed by Kolkata with Rs540 to Rs31,715. The metal in Mumbai spurted by Rs520 to Rs31,400 and in Chennai by Rs540 to Rs31,575. With the general firming trend, silver in Delhi recorded a biggest gain of Rs2,250 to Rs59,500 per kg and Rs2,020 in Chennai to Rs60,975. It shot by Rs2,040 to Rs60,140 in Mumbai and Rs2,000 to Rs59,200 in Kolkata.
Trading sentiment was bolstered as the precious metals posted the highest monthly gains since January in overseas markets after Federal Reserves Chairman Ben S. Bernanke indicated more measures to aid the US economy, lifting demand for the metal as an inflation hedge.
Gold in global markets, which normally set price trend on the domestic front, jumped by 36.30 dollar to 1,691.60 dollar an ounce and silver by 4.27 per cent to 31.74 dollar an ounce in New York last evening soon after Bernanke speech.
On the domestic front, gold of 99.9 and 99.5 per cent purity spurted by Rs550 each to Rs31,725 and Rs 31,525 per ten grams respectively, a level never seen before. Sovereign shot up by Rs200 to Rs24,950 per piece of eight grammes.
In a similar fashion, silver recorded a hefty rise of Rs2250 to Rs59,500 per kg on hectic buying by industrial units and coin makers. Silver weekly-based delivery surged by Rs2275 to Rs59,015 per kg. Silver coins zoomed by Rs5,000 to Rs75,000 for buying and Rs76,000 for selling of 100 pieces.
Gold traders are the most bullish in nine months after investors’ bullion holdings expanded to a record on mounting speculation that central banks will do more to bolster economic growth.
Twenty-nine of 35 analysts surveyed by Bloomberg expect prices to rise next week and three were bearish. A further three were neutral, making the proportion of bulls the highest since Nov.11.
Investors bought 51.7 metric tonnes valued at $2.78 billion through gold-backed exchange-traded products this month, the most since November, overtaking France as the world’s fourth-largest hoard when compared with national reserves.
Data released showed Chinese manufacturing at its weakest since November, signaling the nation may need more action to rebound from six quarters of slowing growth. European leaders are still struggling to contain the debt crisis.
Minutes of the Federal Reserve’s most recent meeting showed many policy makers favor more stimulus. Gold rose 70 per cent as the Fed bought $2.3 trillion of debt in two rounds of quantitative easing from December 2008 through June 2011.
