Strong rupee caps gold rally; silver at 30-year high of Rs33,000 a kg

24 Sep 2010

A strong rupee capped gold prices in India at Rs19,465 and Rs19,365 per ten gm, respectively, for 99.9 and 99.5 per cent purity gold while silver prices hit a record Rs33,000 per kg, a 30-year high.

In the European market, gold futures neared the $1,300 per ounce mark, as the US dollar remained depressed. COMEX gold futures for December hit a high of $1,299.70 per ounce.

In fact, gold prices declined by Rs5 each per ten gm today against a Rs125 gain in the previous session. Sovereign (eight gm coins), however, remained steady at Rs15,300 per piece.

In Mumbai, MCX gold futures for October was quoting below Rs19,200 per 10 gm as a strong rupee capped the upside despite the surge in global prices.

Domestic gold prices slid marginally due to lack of buying support, even as silver remained bullish. Silver rose on the international markets as well with the price shooting up 1 per cent to $21.32 an ounce - the highest in two-and-a-half years.

Silver weekly delivery was up Rs20 at Rs32,570 a kg. Silver coins also rose Rs100 to hit a new high of Rs35,300 (buy) and Rs35,400 (sell) per 100 pieces.

Gold's gains in the international markets were supported by continuing economic worries and strong stockist buying expecting a December peak in retail demand.