Gold Price Jumps soared Rs. 550 to Rs. 30,450 per ten gram at the bullion market today after North Korea fired a missile over Japan, deepening the tension between Pyongyang and the US.
Silver followed suit to recapture the Rs. 41,000-mark by climbing Rs. 900 to Rs. 41,100 per kg on increased off take by industrial units and coin makers.
Bullion traders said a firm trend overseas, where gold rallied to the highest level this year after North Korea fired a missile over Japan boosting the demand for havens amid escalating tensions between Pyongyang and the US and its allies, mainly led to the rally in gold prices. Fresh buying by local jewellers also supported the uptrend.
Globally, gold rose 0.90 per cent to $1,322.41 an ounce, the highest intra-day gain since November 9 last year and silver by 0.66 per cent to $17.54 an ounce in Singapore.
Gold Price Jumps In the national capital, gold of 99.9 and 99.5 per cent purity surged by Rs. 550 each to Rs. 30,450 and Rs.30,300 per 10 gram respectively. The precious metals had lost Rs. 50 in yesterday’s trade. Sovereign also moved up by Rs. 100 to Rs. 24,600 per piece of eight gram.
Following gold, silver ready flared up by Rs. 900 to Rs. 41,100 per kg and weekly-based delivery by Rs. 675 to Rs.39,900 per kg. Silver coins too spurted by Rs. 1,000 to Rs. 74,000 for buying and Rs. 75,000 for selling of 100 pieces.
Suki Cooper, an analyst at Standard Chartered in New York, quoted by the Financial Times estimated that investors bought a record 474 tonnes worth more than $19 billion over the past five weeks on the Comex market. “Buying only came close to such levels in Comex futures after the vote for Brexit,” according to Cooper.
Hedge funds added to their exposure to the yellow metal for the fifth straight week according to trader positioning data supplied by the government. Net longs – bets that gold will be more expensive in the future – rose 9% to the equivalent of 19.6m ounces (610 tonnes), the highest since October. That’s well below the mid-2016 record high, but marks a sharp reversal from the negative sentiment that prevailed for a good part of the summer.