Gold strengthens for fourth straight week, up Rs 185 per grams

Gold strengthens for fourth straight week, up Rs 185 per grams
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Mumbai: Gold strengthened for the fourth straight week up Rs 185 to close the week at Rs 29,425 per 10 grams at the bullion market following sustained demand from stockists and retailer amid firm bullish trend overseas.

Elsewhere, silver too continued its fourth weekly rally to jumped by another Rs 300 per kg to finish the week at Rs 38,725 owing to good speculative buying coupled with higher industrial offtake.

Traders said a firming trend overseas and increased buying by jewellers and retailers to meet ongoing wedding season demand mainly kept the precious metal higher.

Overseas, Gold futures logged an 11th day of gains on Friday the longest stretch of consecutive session in a row, thats the longest such streak for a most-active futures contract based on data from FactSet going back to late 1984.

For the week, gold rose roughly 1 per cent climb after three weeks of gains. February gold rose 70 cents, to settle at USD 1,322.30 an ounce. Futures prices again logged their highest settlement since September 15.

The precious metal started the day on shaky ground with some caution emerging among investors after the metal hit 10-straight sessions of gains on Thursday, which was its longest run in more than six years.

The dollar, which usually moves inversely to gold, was initially higher, was pushed lower by the employment report, then bounced back. In other metals, March silver rose to USD 17.285 an ounce, up about 0.8 per cent from a week ago.

In the New York Comex trade, gold for February delivery jumped to USD 1,322.20 an ounce compared to last Friday’s close of USD 1,309.30 and silver for March contract also gained to end at USD 17.285 an ounce from USD 16.925.

On the domestic front, standard gold (99.5 purity) resumed higher at Rs 29,375 per 10 grams from last Friday’s closing level of Rs 29,240, it rose further to Rs 29,475 before settling at Rs 29,425, revealing a smart rise of Rs 185, or 0.63 per cent.

Pure gold (99.9 purity) also commenced higher at Rs 29,5250 per 10 grams compared to preceding weekend’s level of Rs 29,390, it later surged to Rs 29,625 before ending at Rs 29,575, showing a gain of Rs 185, or 0.63 per cent.

Silver ready (.999 fineness) too opened positive at Rs 38,725 per kilogram from last Friday’s closing level of Rs 38,425, and later climbed to Rs 38,760 before finishing at Rs 38,725, showing a rise of Rs 300 per kilo, or 0.78 per cent.

PTI