Gold price jumps on global cues

Mumbai, Jan. 11: Gold continued its upward journey for the seventh day rising by another `150 per 10 gram at the bullion market here on Wednesday on sustained investors offtake and increased jewellery demand amid wedding season.

Silver also shot up by `475 per kg and reclaimed the `41,000-mark on persistent buying by industrial users.

Standard gold (99.5 purity) climbed up by `150 to settle at `28,710 per 10 grams from Tuesday’s closing level of `28,560. Pure gold (99.9 purity) also rose by a similar margin to end at `28,860 per 10 grams against `28,710 earlier.

Silver (.999 fineness) strengthened by `475 per kg to conclude at `41,385 compared with `40,910 on Tuesday.

In Delhi, gold of 99.9 per cent and 99.5 per cent purity added `70 each to `29,100 and `28,950 per 10 gram. The precious metal had climbed `330 on Tuesday.

Globally, gold hit sixweek highs as investors worrying about political uncertainty bought the precious metal, but dollar strength due to higher US rates is expected to cap gains. “Trump’s upcoming news conference seems to be the main highlight of the day and the dollar is said to be moving up on account of this," said INTL FCStone analyst Edward Meir.

Analysts say elections over the course of the year in France, the Netherlands and Germany are likely to create political tensions in the EU and support gold. “The uncertainty surrounding Brexit could lead to further demand for gold from retail investors in the UK,” Quantitative Commodity Research analyst Peter Fertig said.

A higher US currency makes dollar-denominated commodities more expensive for holders of other currencies.