New Delhi: Gold prices surged by Rs. 1,310 per 10 grams in Delhi – the highest in two years – to Rs. 31,010 on strong demand from stockists ahead of the festive season, after the government increased import duty on the metal to 10 per cent.
A sharp fall in the Sensex and rupee, and strong global cues, contributed to the upsurge in gold price, which posted the biggest single-day gain after August 19, 2011. Interestingly, the metal had shot up by Rs. 1,310 on August 19, 2011 as well.
Gold has regained the Rs. 31,000 level after six months. An all-time high was Rs. 32,975 per 10 gram on November 27, 2012, in Delhi bullion market.
Silver followed suit and spurted by Rs. 3,270 to Rs. 49,320 per kg, its biggest single day gain this year on rising demand from industrial units and coin makers.
Bullion traders attributed the sharp jump in gold prices to fear of tight supply following government’s decision to hike import duty of silver and gold to narrow current account deficit.
The buying sentiment got bolstered as rupee hit record low of 62 against the US currency, making the dollar-denominated metal costlier.
Seeking to reduce gold imports, RBI also prohibited inward shipment of gold coins, medallions and dores without licence.
“Gold is back in demand as falling rupee and melting equities leaving no place for investor to park their funds,” said Surender Jain, vice president of All India Sarafa Bazar.
He said a firming trend in overseas markets was also supporting the bullion whereas market hardly witnessed any physical buying.
Gold in overseas markets climbed to two-month high on strong buying from China and prospects for less US monetary stimulus. The metal rose by 0.50 per cent to 1,372.97 dollar an ounce in Singapore.
On the domestic front, gold of 99.9 and 99.5 per cent purity spurted by Rs. 1310 each to Rs. 31,010 and Rs. 30,810 per ten grams respectively. Sovereign followed suit and climbed by Rs. 200 to Rs. 24,700 per piece of 8 grams.
Silver ready sky-rocketed by Rs. 3270 to Rs. 49,320 per kg and weekly delivery by the same margin to Rs. 49,220 per kg. Silver coins flared up by Rs. 2000 to Rs. 86,000 for buying and Rs. 87,000 for selling of 100 pieces.(profit.ndtv)