Gold Prices Rise to a Six-Year High Thanks to Seasonal Demand
Gold prices have increased for the sixth week running and are trending towards a near six-year high, of RS 32,780. They ended at RS 32,650 per 10grams on the bullion market, as interest in the commodity increased in the run-up to Diwali. Silver, on the other hand, has lost some ground.
Bullion traders say that buying from ornament makers, and the festival and wedding related seasonal demand has been a big boost to their trade. Globally, gold has been moving more erratically and ended the week at $1,233.20 per ounce, a shade lower than the previous week. Silver remained flat at $14.82 per ounce.
In the capital of gold trading – the UAE- gold of 99.99% began the week steady at RS 32,550 while gold with the purity of 99.5% was at RS 32,400 for 10 g.
The surge in interest at this time of year means that gold is currently at its highest level since the end of November 2012, when the precious metal reached a high point 32,940. Silver, however, saw a volatile week of trading and has ended the week at RS 39,520, a fall of RS 70. Over the course of the week, Silver did manage to make gains of RS 110, but it is down over the course of the month. Silver coins are stronger, up by RS 1,000 with buys at RS 76,000 and sell at RS 77,000 for 100 pieces. The strength of the coins is because of increased interest thanks to Diwali, and it will be interesting to see what happens to the coins when the seasonal uptick in interest comes to an end. Festival-related seasonal demand is not going to last forever, and interest in silver may tail off again.
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