KOCHI: Gold regained the Rs 31,000-mark per 10 gram on Thursday, rising Rs 50 at the bullion market riding on firm global trends and continued buying by domestic jewellers to meet the wedding season demand.
Traders said sentiment remained firm after gold rose for a sixth day to trade above $1,300 an ounce in the global markets on haven demand as equities fell for the sixth time in seven days, following the US Federal Reserve’s decision in leaving interest rates unchanged. Furthermore, persistent wedding season buying at home fuelled the uptrend.
“Chances are that gold prices may go up. Increased buying in the festival season was the reason behind the recent increase in gold prices in India. The US elections play a huge role in the rise in gold prices in the global market,” said B Govindan, Chairman, Bhima Jewellers.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity rose by another Rs 50 each to Rs 31,000 and Rs 30,850 per 10 grams, respectively. The yellow metal had gained Rs 300 in last two days. Sovereign also went up by Rs 200 to Rs 24,600 per piece of eight grams. The gold rate in Kerala was Rs 2890 per gram on Thursday.
“Prices likely to hold the support of 30200 region and such happening moves could push prices higher to 30530 region. While weakness may see only below 30200 region,” says a research report from Geofin Comtrade.
J Muruganandan, Manager-Sales, Kirtilal Jewellers said that even though price is a bit high compaered to the recent past people show affinity towards the bullion.
“The uncertainty in all other investment options have attracted investors towards gold. Only after the US elections there will be much action in financial markets. Till then the yellow metal would stand benefited,” said Sanjeev Kumar G, founder of prognoadvisor.com, a financial analysis firm.