Mumbai: Gold prices on Tuesday hit 33 months high on fresh buying by stockists and investors in view of the upcoming festival season amid bullish global cues.
Standard gold (99.5 purity) climbed by Rs 260 to end at Rs 31,480 per 10 grams from last Friday’s closing level of Rs 31,220.
Pure gold (99.9 purity) also moved up by a similar margin to close at Rs 31,630 per 10 grams as compared to Rs 31,370 previously.
According to analysts, physical buyers are absent from the market due to steep increase prices. The gold price has risen by nearly 17 per cent since January 1, making it best asset class in terms of return.
Globally, gold rose around one per cent on Tuesday as a series of lower-than-expected US economic data weighed on the dollar and reduced prospects for a Federal Reserve interest rate hike this year. Spot gold rose to a session high in early European trade at $1,351.35 an ounce.
Spot gold was within reach of a more than two-year high of $1,374.91 hit last month as investors sought refuge from volatility across financial markets following Britain's vote to leave the European Union.
Industrial metal silver too rebounded in the domestic market by Rs 230 per kg following good industrial offtake. Silver (.999 fineness) rose by Rs 230 to finish at Rs 47,270 per kg as against Rs 47,040 last Friday. Globally, silver was up at $20.08 an ounce.
