Gold hits 9-month high at Rs 31,945

New Delhi, August 25 – Gold and silver prices staged a smart rally on Saturday. The yellow metal hits the nine months high to close at 31,945 per 10 gram as against previous close of Rs 31,160 per 10 gram in Delhi on the back of strong demands from investors, stockists and jewellers. A gold merchant said that as gold prices have started firming up in the international markets, stockists and jewellers are seen buying the precious metal to meet the festive season demand.

 

Silver witnessed even stronger rally on Saturday as its prices jumped by Rs 2,260 per Kg to close at Rs 54,260 per kg in Delhi.

 

The main reason for the surge in the precious metal prices is the speculation that because of of weaker-than-expected housing and jobless claims data in US, its Federal Reserve may not resort to unwind the quantitative easing and continue to buy banks' and financial institutions' assets to supply more money in the market. This will continue to keep the interest rate low in US, which will help the investment in precious metals regain their shine.

 

In the international market, gold price went up by sharply by $ 25 per ounce to quote at $ 1,401.40 per ounce – highest in the last 11 weeks. This has given the hope of turnaround of the gold demand in the international market.