Local demand, global cues boost gold rates

KOCHI : After a weak December marked by tepid demand and muted sales, gold prices increased Rs 330 on Tuesday to touch a one-month high of Rs 29,030 for 10 grams. The rise was largely driven by positive global cues and robust buying by local jewellers.

According to bullion traders, sentiment in market improved after the yellow metal moved up in global markets as weakness in the US dollar raised demand. Globally, gold rose 0.43 per cent to $1,185.90 an ounce in Singapore. 

“The US dollar weakened ahead of the US President-elect Donald Trump’s first official news conference. The Dollar index that measures the US dollar against a basket of currencies declined as investors booked profit. Gold price breached a month high level supported by a weak dollar,” said a research report by Geofin Comtrade.

In Delhi, gold of 99.9 and 99.5 per cent purity climbed Rs 330 each to Rs 29,030 and Rs 28,880 for 10 grams, respectively, a level last seen on December 5 when it had closed at Rs 29,050. Sovereign, however, remained unaltered at Rs 24,200 per eight gram in limited deals. Gold price was down by Rs 40 a gram on Monday. 

“The price at the world level will remain range-bound at $1,150-$1,250 at least in the first six months of 2017. Also, the purchasing power was increased due to disbursal of salaries and pensions. The adverse impact of demonetisation is also getting diluted. The price in Kerala was Rs 2,690 a gram,” said S Abdul Nazar of Koickal Jewellers.