Gold prices rise for second day on seasonal demand, global cues

Gold prices gained Rs 180 to Rs 27,300 per 10 gm on Monday, rising for the second consecutive session, supported by increased buying and a firming trend overseas.

Traders said increased buying by jewellers and retailers, triggered by wedding season demand and a firming global trend, mainly kept prices of the precious metal higher.

Globally, gold prices advanced to the highest level in almost two weeks, after China announced a second interest-rate cut in three months and the United States reported a slower pace of economic expansion than estimated, traders said.

Gold in Singapore, which normally sets price trend on the domestic front, climbed up by 0.8 per cent to US $1,223.34 an ounce, the highest since February 17 and silver by 0.9 per cent to US $16.74 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity flared up by Rs 180 each to Rs 27,300 and Rs 27,100 per 10 gram, respectively. It had gained Rs 120 in the previous session.

Sovereign, however, held steady at Rs 23,700 per piece of eight gram on some support.

Silver prices also moved up by Rs 400 to Rs 37,600 per kg on increased offtake by industrial units and coin makers.

In line with a general firm trend, silver ready rose by Rs 400 to Rs 37,600 per kg and weekly based delivery by Rs 530 to Rs 37,085 per kg.

Prices of silver coins spurted by Rs 1,000 to Rs 60,000 for buying and Rs 61,000 for selling of 100 piece on s3 in wedding season demand.