NEW DELHI: Gold surged by Rs 555 to reach Rs 32,030 per 10 gram at the bullion market Wednesday, taking positive leads from global markets amid fresh buying by local jewellers.
Silver too went past the Rs 39,000-per kg mark on increased offtake by industrial units and coin makers.
Traders said sentiment turned upbeat on positive global cues, as demand picked up after the US and Canada reached an agreement to salvage a North American free trade deal.
Besides, the rupee collapsing to a fresh life-time low of 73.41 against the dollar (intra-day), making imports costlier, too supported the upside in gold prices, they added.
Globally, gold rallied 0.32 per cent to $1,207.60 an ounce in Singapore.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity soared by Rs 555 each to Rs 32,030 and Rs 31,880 per 10 gram, respectively. The precious metal had lost Rs 150 in the previous session on Monday.
Gold Testing Upper Limits
The misery for gold traders continues. On Tuesday, gold rallied up to $1,212 before closing at $1,208. The $20 rally looks like another attempt at breaking out to the upside but will more than likely fail and test the bottom end.
This is the pattern until it’s not, and consolidation should continue. The longer this pattern holds, the more powerful the next move will be. There are a lot of positive signs for gold that are brewing underneath the surface.
Commodities in general are starting to move higher — cocoa, sugar, coffee and grains. Although gold and silver are hard-asset commodities, the fact that the softs are now catching a bid is bullish for gold.
Equities appear to be topping, making more new lows than new highs every day. The money flow appears to be going into the commodities. Silver has broken out to the upside. We are bullish gold but will wait until gold breaks out above $1,220. – Neal Bhai Reports
