Gold, silver extend gains on wedding season demand

New Delhi: An upward trend continued unabated in gold prices at the bullion market here during the week, largely driven by increased demand from jewellers and retailers, shrugging off weak global cues.

Silver too followed suit and ended above the Rs 40,000 per kg mark on increased offtake by coin makers and consuming industries.

Traders said persistent rise in gold prices was mostly attributed to pick up in demand from jewellers and retailers, triggered by ongoing wedding season amid depreciation in the rupee vis-a-vis the US dollar. However, a weak trend overseas capped the gains, they added.

Globally, gold ended the week at USD 1,282.30 an ounce and silver at USD 15.41 an ounce in New York as against the previous week's mark of USD 1,287.80 and USD 15.67.

In the national capital, gold of 99.9 and 99.5 per cent purity commenced the week notably higher at Rs 33,100 and Rs 32,950 per 10 grams respectively and advanced to hit a high of Rs 33,300 and Rs 33,150 on day-to-day buying activity.

However, later the yellow metal lacked necessary buying support at higher levels and slipped to end the week at Rs 33,160 and Rs 33,010, still showing a smart rise of Rs 285 each. Sovereign also ended the week higher at Rs 25,500 per piece of 8 grams.

Silver ready remained in the positive zone for the better part of the week and settled with a rise of Rs 250 at Rs 40,100 while weekly-based delivery fell by Rs 273 to Rs 39,198 per kg. Silver coins, however, held steady Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.