Gold prices advanced at the domestic bullion market on Monday due to modest off-take from retail consumers amid sustained local buying support.
Silver, maintaining its strong rallying momentum, climbed further on heavy speculative as well as industrial demand.
Though the vibe in the gold market is certainly upbeat at this juncture, investors and speculators turned a bit cautious and likely to stay on the sidelines after recent massive spike in prices, said a bullion trader.
Driven by heavy stockists’ and jewellery demand ahead of festival and wedding season supported by speculative off—take amid ongoing retailer supply shortage in the midst of imports curb has led to a substantial rise in the prices of gold, scaling to multi—month highs last week.
Standard gold of 99.5 per cent purity gained by Rs 40 to settle at Rs 31,365 per 10 gm from Saturday’s closing level of Rs 31,325.
Pure gold of 99.9 per cent purity added Rs 50 to end at Rs 31,520 per 10 gm from Rs 31,470.
Silver ready (.999 fineness) surged by Rs 300 to conclude at Rs 51,785 per kg as against Rs 51,485 last weekend.
Globally, the yellow metal zoomed to hit fresh two—month high on the back of hedge fund buying.
Spot gold was bid higher at $1,373.61 an ounce in early European trade.