Gold climbs for 6th day on global cues, rising demand

MUMBAI: Tracking a firming trend overseas and pick up in demand from jewellers, gold continued its upward trend for the sixth consecutive day and gained another Rs 190 to Rs 26,190 per ten gram at the bullion market on Thursday.
Silver also strengthened by Rs 400 to Rs 36,100 per kg on the back of increased offtake by industrial units.
Bullion traders said sentiment remained upbeat after precious metals rose in global markets as China’s move to devalue its currency spurred demand for safe-haven assets and sustained buying by jewellers to meet seasonal demand.
Furthermore, depreciating rupee which breached the 65-mark for the first time since September 2013 against the American dollar to 65.17 (intra-day) pushed rising gold prices as it would make imports costlier, traders said.
Gold in New York, which normally determines price trend on the domestic front, shot up by 1.52% to $1125.50 an ounce and silver by 1.17% to $15.54 dollar an ounce in Wednesday’s trade.
In the national Capital, gold of 99.9 and 99.5% purity surged by another Rs 190 each to Rs 26,190 and Rs 26,040 per ten gram respectively. It had gained Rs 1,020 in the previous five trading sessions.
Sovereign, however, held steady at Rs 22,400 per piece of eight gram in scattered deals.
Following gold, silver ready regained the Rs 36,000 mark by advancing Rs 400 to close at 36,100 per kg, while weekly-based delivery gained Rs 465 to Rs 35,875 per kg.
On the other hand, silver coins met with resistance at prevailing levels and plunged by Rs 1,000 to Rs 50,000 for buying and Rs 51,000 for selling of 100 pieces.

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