Gold Rises On Retail Buying For Festivals - Nov 1, 2008

Tracking strong global cues gold prices surged by Rs 560 to close at Rs 12,570 per ten gram on the bullion market here on brisk buying by retail customers for the ongoing festival and marriage season. Standard gold rose by Rs 320 at Rs 12,570 per ten gram while Jewellery, which opened after two day''s break met with a rush of buyers for jewellery, quoted higher by Rs 560 at Rs 12,420 per ten gram. Sovereign gained Rs 100 at Rs 10,500 per piece of eight gram. Marketmen said, the precious metal which had remained in demand during recent festivals was boosted by customers buying jewellery for marriages.

The market also received support as all buying shifted to the national capital following closure of main bullion markets in Mumbai, they added. The bullion prices spiralled after commodity prices posted biggest surge in five decades on speculation reduced borrowing costs in US and China may help spur recovery in raw material demand. Also, the U.S. cutting borrowing rate pushed up the demand for the yellow metal.

In Asia, gold rose 2.1 per cent to 770.93 dollar an ounce and silver by 3.6 cents at 10.23 dollar an ounce. The yellow metal climbed for a third day in Asia as the dollar dropped against the euro, raising appeal of the metal as an alternative investment, after the U.S. Fed cut interest rates to match a half-century low, was a positive factor for gold.