Gold surges by Rs 240 on firming global trends

Gold prices rose by Rs 240 to trade at over one-month high at Rs 27,250 per 10 grams at the bullion market on Monday amid firming global trends and increased buying by jewellers and retailers.

Silver also spurted by Rs 900 to Rs 38,500 per kg on increased offtake by industrial units and coin makers.

Traders attributed the rise in gold prices to global cues after data showing the weakest pace of US hiring in more than a year clouded the outlook for interest-rate increases which boosted the demand for precious metals.

Gold in Singapore, which normally sets price trend on the domestic front, increased by one per cent to $1,218.92 an ounce, the highest price since March 26.

Besides, increased buying by jewellers and retailers to meet rising demand supported the uptrend, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity climbed by Rs 240 each to Rs 27,250 and Rs 27,100 per 10 grams, respectively, a level last seen on March 2.

The precious metal had gained Rs 435 in the previous three sessions.

Sovereign, however, remained flat at Rs 23,700 per piece of eight grams.

Following gold, silver ready recorded significant rise of Rs 900 to Rs 38,500 per kg and weekly-based delivery by Rs 830 to Rs 38,180 per kg.

Silver coins also spurted by Rs 1,000 to Rs 57,000 for buying and Rs 58,000 for selling of 100 pieces.