Gold regains 32k level on festive demand, global cues

In a five-day long rally, gold prices regained Rs 32,000 per 10 gm level after six-week in the national capital today on sustained buying by stockists to meet the rising festive demand amid a firming global trend.

Gold climbed Rs 270 to Rs 32,040 per 10 gm, a level last seen on September 26 and silver jumped up by Rs 940 to Rs 60,800 per kg on increased offtake by jewellery fabricators and industrial units for the auspicious festival of Dhanterus and Diwali.

Sentiment remained bullish as gold climbed to a three-week high  in global markets as prospects of more US stimulus and the debt crisis in Europe boosted demand, while investors holding in exchange-traded funds rose to a record.

Gold in the international markets, which normally set price trend on the domestic front, increased 0.4 per cent to USD 1,738.19 an ounce and silver edged up to USD 32.50 an ounce in Singapore.

In addition, sustained buying by stockists to meet the rising festive season demand further bolstered the sentiment.

On the domestic front, gold of 99.9 and 99.5 per cent purity shot up by Rs 270 each to Rs 32,040 and Rs 31,840 per 10 gm, respectively, a level last seen on September 26. The metal had gained Rs 820 in last four sessions.

Sovereign continued to be asked around previous level of Rs 25,500 per piece of eight gram in limited deals.

Similarly, silver ready spurted by Rs 940 to Rs 60,800 per kg and weekly-based delivery by Rs 670 to Rs 60,300 per kg. Silver coins also zoomed by Rs 1,000 to Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces on account of rising festive season demand.

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