Free Press Journal

Bullion enjoys stunning rebound; hits 3-week top


Mumbai: Gold prices marched ahead to hit its highest level in more than three-week high at the domestic bullion market as renewed buying interest kept up the strong bullish momentum amid firming overseas trend. Depreciating rupee value in the midst of escalating currency war in the Asian region following China’s decision to devalue the yuan and massive sell-off in global equities predominantly supported the upmove in gold prices, a bullion dealer said.

Attractive low-level buying by jewellery stockists and traders ahead of peak festive season along with wedding-related demand further buoyant the sentiment. Standard gold (99.5 purity) rallied by Rs 350 to finish at Rs 25,600 per 10 grams from Tuesday’s closing level of Rs 25,250.

Pure gold (99.9 purity) also climbed by a similar margin to end at Rs 25,750 per 10 grams compared to Rs 25,400 yesterday. Gold has been under intense panic selling pressure in recent weeks and witnessed a nearterm rout amid a flash-crash worldwide on strengthening dollar against the back drop of Fed rate hike fears.

The yellow-metal had crashed to a four-year low of Rs 24,590 during the July meltdown. Elsewhere, silver shot-up to reclaim the Rs 36,000 mark on the back of heavy speculative buyout. Silver (.999 fineness) jumped by Rs 500 to conclude at Rs 36,240 per kg against overnight level of Rs 35,740. In worldwide trade, the shiny-metal traded near a three- week high, benefiting from traditional safe-haven asset and also short-covering.

Spot gold was substantially higher at USD 1,117.50 an ounce in early European trade, while silver quoted up at USD 15.42 an ounce.