Gold price jumps on global cues

Mumbai: Gold continued its upward journey for the seventh day rising by another Rs 150 per 10 gram at the bullion market here on Wednesday on sustained investors offtake and increased jewellery demand amid wedding season.

Silver also shot up by Rs 475 per kg and reclaimed the Rs 41,000-mark on persistent buying by industrial users. Standard gold (99.5 purity) climbed up by Rs 150 to settle at Rs 28,710 per 10 grams from Tuesday’s closing level of Rs 28,560. Pure gold (99.9 purity) also rose by a similar margin to end at Rs 28,860 per 10 grams against Rs 28,710 earlier.

Silver (.999 fineness) strengthened by Rs 475 per kg to conclude at Rs 41,385 compared with Rs 40,910 on Tuesday. In Delhi, gold of 99.9 per cent and 99.5 per cent purity added Rs 70 each to Rs 29,100 and '28,950 per 10 gram. The precious metal had climbed Rs 330 on Tuesday.

Globally, gold hit six-week highs as investors worrying about political uncertainty bought the precious metal, but dollar strength due to higher US rates is expected to cap gains. “Trump’s upcoming news conference seems to be the main highlight of the day and the dollar is said to be moving up on account of this," said INTL FCStone analyst Edward Meir.

Analysts say elections over the course of the year in France, the Netherlands and Germany are likely to create political tensions in the EU and support gold.

“The uncertainty surrounding Brexit could lead to further demand for gold from retail investors in the UK,” Quantitative Commodity Research analyst Peter Fertig said. A higher US currency makes dollar-denominated commodities more expensive for holders of other currencies.