Gold rises to Rs. 30,500 per 10 gram, prices likely to increase further

New Delhi: Gold prices gained further by Rs. 130 to Rs. 30,500 per 10 grams in the national capital on 27 January on sustained buying by stockists in line with firm global trend.

Analysts expect gold to rise further due to the recent slide in the value of the rupee. "A weaker rupee should continue to support gold," said Navneet Damani, associate vice-president, Motilal Oswal Commodities.

The rupee, which breached the 63 to a dollar mark on Monday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Gold in New York, which normally set price trend on the domestic front, advanced 0.2 per cent to $1,264.50 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity advanced by Rs. 130 each to Rs. 30,500 and Rs. 30,300 per 10 grams, respectively. It had gained Rs. 200 in yesterday.

Sovereigns followed suit and rose by Rs. 50 to Rs. 25,150 per piece of eight grams.