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04-24-2012, 10:30 AM #1
Gold spurts on Akshaya Tritiya buying
Gold prices surged to nearly two-month high of Rs 29,070 per ten gram on Monday following buying by jewellers on the eve of 'Akshaya Tritiya'.
The gold advanced by Rs 30 to Rs 29,070 per ten gram, a level last seen on February 23, on increased buying by local parties and jewellers for the Akshaya Tritiya festival, considered as an auspicous day in Hindu mythology for buying of precious metal.
It is believed that any new venture or asset creation on this day brings in good luck, growth and prosperity.
Traders said buying activity picked up for the festival and customers ignored a weakening trend in overseas markets, which normally set price trend in domestic markets.
They said trading volumes were narrow as retail customers were making token purchases on the occasion at prevailing costly levels.
The precious metal traded higher at Rs 28,830 per ten gram in Chennai and Rs 29,080 in Kolkata as auspicious buying spread over a broader front.
"The market saw local customers making small transaction which reduced the business volumes," a Delhi-based jeweller Rakesh Anand said.
He said demand emerged as the country celebrates Akshaya Tritiya, the second most auspicious day for buying gold after Dhanteras. The ongoing wedding season also supported the trend.
With an aim to cash in on the investor demand, both the leading stock exchanges, BSE and NSE, would allow trading till 8 pm in gold ETFs (Exchange Traded Funds) for paperless electronic format transaction tomorrow.
Besides, the two bourses have decided to waive the transaction charges for all trades done in Gold ETF securities for the day.
The National Spot Exchange Ltd (NSEL) has also announced special offers on E-Gold, E-Silver and E-Platinum for Akshaya Tritiya. These include zero transaction charges and waiver of making and packing charges on physical conversion of E-Gold, E-Silver and E-Platinum.
On Akshaya Tritiya in 2011, investors traded in gold ETFs with turnover exceeding Rs 500 crore on NSE and BSE, which is more than double the volumes of 2010.