Gold reclaims Rs 31,000-mark on festive buzz, weak rupee

Mumbai: Maintaining its upward march for the second straight week, gold went past the Rs 31,000-mark by rising Rs 450 to end at Rs 31,350 per ten grams at the bullion market on the back of persistent buying by local jewellers, driven by ongoing festive season.

However, the precious metal after moving in a tight range finally ended a shade lower at USD 1,200.80 an ounce.

Furthermore, a depreciating rupee which slumped to a historic low of 71 against the dollar, making imports costlier, aided the uptrend.

Silver too strengthened further on increased offtake by industrial units and coin makers.

Bullion traders said sentiment largely remained upbeat on day-to-day persistent buying by local jewellers, driven by ongoing festive season.

In the global market, gold, however, ended the week tad lower at 1,200.80 and silver at USD 14.51 an ounce in New York.

In the national capital, gold of 99.9 and 99.5 per cent purity commenced the week higher and continued to rise on day-to-day buying by local jewellers to meet the ongoing festive season demand and settled at Rs 31,350 and Rs 31,200 per ten grams, respectively, showing a significant rise of Rs 450 each.

Sovereign gold, however, moved in a narrow range in scattered deals and pegged at last level of Rs 24,500 per piece of eight gram.

Following gold, silver ready ended the week higher by Rs 100 to Rs 38,350 per kg and weekly-based delivery by Rs 115 to Rs 37,115 per kg.

Silver coins too spurted by Rs 1,000 to Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.