PTI: Gold prices rise sharply as equities, commodites plunge
New Delhi, Oct 7 (PTI) Tracking strong global cues gold prices today rose by Rs 520 to close at Rs 13,400 per ten gram in the bullion market here on festive buying and melting stock markets attracting investors looking for safe haven.
Standard gold shot up by Rs 520 at Rs 13,400 and Rs 13,250 per ten gram respectively. Sovereign also rose by Rs 100 at Rs 10,600 on emergence of buying for festivals.
Marketmen said the festival buying was limited while purchases by general investors picked up sharply and the metal recovered most of the losses in last seven days of 'Navratras'.
There was negligble demand for gold, as it remained weak in last few session on reduced offtake, they said and added that today's surge brought back the metal to a level seen on the first 'Navratras', on October 30.
In Hindu mythology, ten days of 'Navratras' is considered to be an auspicious period to make purchases in precious metals such as silver and gold.
The upsurge was partly supported by a firming trend in international bullion markets on similar ground as global stock markets led by the US, nearly crashed on panic selling. The US Dow Jones Average index dipped below 10,000 points, first time in four years and Japan's Nikeei index to five year lows.
Firming US currency was another boosting factor for the dollar-priced precious metals. In London, gold advanced for a second day, buoyed by demand for the metal as a haven as equities continued to slide.
Silver ready surged by Rs 500 at Rs 19,100 per kg and weekly based delivery by Rs 560 at Rs 19,300 per kg. Silver coins also notched up by Rs 100 at Rs 28,300 for buying and Rs 28,400 for selling of 100 pieces. PTI