Gold appeal grows on US rate hike delay; at 45-day high

Hardening further, gold prices surged Rs. 170 to trade at a 1-1/2 month high of Rs. 26,870 per 10 grams at the bullion market on Monday, driven by a firming global trend and increased buying by jewellers to meet wedding season demand.

Silver also gained Rs. 275 to Rs. 37,000 per kg following higher off-take by industrial units and coin makers.

Bullion traders said that besides a firming trend overseas where gold climbed to its seven-week high, brisk buying by jewellers to meet rising seasonal demand mainly took gold prices to a 1-1/2 month high.

Globally, gold in Singapore, which normally sets the price trend on the domestic front, gained 0.2 per cent to $1,158.20 an ounce amid speculation that the U.S. Fed may refrain from tightening until the next year. Silver also climbed 0.88 per cent to $15.96 an ounce.

In the national capital, gold of 99.9 per cent purity and 99.5 per cent purity surged Rs. 170 each to Rs. 26,870 and Rs. 26,720 per 10 grams, respectively, a level last seen on August 26. The precious metal had gained Rs. 100 in the previous session on Saturday.

The sovereign also traded Rs. 200 higher at Rs. 22,400 per piece of eight grams. Silver ready rose further by Rs. 275 to Rs. 37,000 per kg and weekly-based delivery by Rs. 330 to Rs. 37,160 per kg.

Price of silver coins for 100 pieces was up by Rs. 1,000 at Rs. 52,000 for buying and Rs. 53,000 for selling.