Gold surges to 7-week high as festive demand pick up

Gold prices today rose by Rs. 50 to trade at nearly seven-week high of Rs. 18,950 per 10 gram in the bullion market here on increased buying by stockists and jewellers to meet the festive season demand.

Silver, however, declined by Rs. 100 to Rs. 29,700 per kg due to weak demand from industrial units and coins makers.

Marketmen said strong global cues also boosted the metal prices here.

Gold in overseas markets, which normally set the price trend on the domestic front, gained 0.2 per cent to trade at seven-week high of 1,231.53 an ounce.

On the domestic front, gold of 99.9 per cent and 99.5 per cent purity rose by Rs. 50 each to Rs. 18,950 and Rs. 18,850 per ten gram respectively. Sovereigns traded at last level of Rs. 14,800 per piece of eight grams in restricted buying.

On the other hand, silver ready fell by Rs. 100 to Rs. 29,700 per kg and weekly-based delivery by Rs. 225 to Rs. 29,315 per kg.

Meanwhile, silver coins maintained around previous level of Rs. 34,500 for buying and Rs. 34,600 for selling of 100 pieces.