Gold prices hit one-month high on robust festive demand

Gold prices regained strength by rising Rs 70 to trade at an over one-month high of Rs 27,650 per ten grams in the national capital on Wednesday amid festive season demand from jewellers and retailers.

Silver, however, fell further by Rs 200 to Rs 38,800 per kg on reduced offtake by industrial units and coin makers.

Traders said pick-up in buying by jewellers and retailers, driven by the ongoing festive season, led to rise in gold prices, but a weak global trend capped the gains.

Gold in Singapore, which normally determines price trend in the domestic bullion market, fell 0.7 per cent to US $1,223.95 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity rose by Rs 70 each to Rs 27,650 and Rs 27,450 per ten grams, respectively - a level last seen on September 11.

The yellow metal had shed Rs 20 on Tuesday.

On the other hand, sovereign continued to move in a tight range in restricted activity and settled at its previous level of Rs 24,200 per eight grams.

However, silver ready remained under selling pressure and declined further by Rs 200 to Rs 38,800 per kg while weekly-based delivery edged up by Rs 25 to Rs 38,765 per kg.

Meanwhile, silver coins held steady at Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.