Gold glitters on positive global cues, jewellers' buying

New Delhi: Gold prices rallied by Rs 75 to Rs 30,325 per 10 grams at the bullion market on October 18, riding on firm global cues and increased buying by jewellers. Silver also strengthened by Rs 350 to Rs 42,600 per kg backed by increased offtake by industrial units and coin makers.

Traders said a firming trend overseas following an unexpected fall in a US manufacturing index that tempered hopes for an imminent interest rate hike, weakening the dollar and raised the demand for precious metal as safe-haven, supported the upside in gold.

Globally, gold rose 0.45 per cent to USD 1,260.90 an ounce and silver by 0.86 per cent to USD 17.59 an ounce in Singapore.

In addition, pick-up in buying activity by jewellers to meet increased demand for ornaments from retailers at the domestic spot markets, triggered by ongoing wedding season, fuelled the uptrend, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity rose by Rs 75 each to Rs 30,325 and Rs 30,175 per 10 grams, respectively. Sovereign, however, remained steady at Rs 24,300 per piece of eight grams.

Tracking gold, silver ready advanced by Rs 350 to Rs 42,600 per kg while weekly-based delivery regained the Rs 42,000-mark by rising Rs 445 to Rs 42,300 per kg on speculative buying. Silver coins too spurted by Rs 1,000 to Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.