New Delhi: Gold prices climbed to over three-week high to close at Rs 27,100 per 10 grams at the bullion market during the week amid a firming trend in overseas markets as the Middle-East unrest boosted demand for the metal as a safe-haven.
Besides, increased buying by jewellers to meet festive and marriage season demand helped the precious metal to reclaim the Rs 27,000-mark.
Market remained closed on Wednesday as traders refrained from doing business to protest the Budgetary proposal that would make it mandatory to quote PAN for purchases worth above Rs 1 lakh.
Bullion merchants attributed the rise in gold prices to a firming trend in global markets where it crossed the USD 1,200 an ounce level on concerns of geo-political tensions as Saudi Arabia and its allies began air strikes in Yemen, raising the appeal of precious metals.
Investors generally turned to precious metals during times of geo-plitical tension, traders said.
Globally, gold ended the week at USD 1,198.40 an ounce after soaring to USD 1,219.79 on Thursday, and silver to USD 16.97 an ounce in New York after rising to USD 17.11 earlier.
Shifting of funds from weakening equity to rising bullion also influenced the sentiment to some extent, they said.
In the national capital, gold of 99.9 percent opened the week on a bearish note at Rs 26,450 and Rs 26,300 per 10 grams on lack of buying support.
Later, it staged a strong comeback on revival of buying by jewellers and a firming global trend and closed at over three-week high of Rs 27,100 per 10 grams, a level last seen on March 4, showing a rise of Rs 600 from the previous week's close.
Gold of 99.5 percent purity followed suit and ended higher by Rs 550 to Rs 26,900 per 10 grams.
Sovereign also gained Rs 100 to close at Rs 23,700 per piece of eight grams.
Silver ready finally settled higher by Rs 550 to Rs 38,550 per kg after alternate bouts of buying and selling.
Similarly, silver weekly-based delivery closed up by Rs 540 to Rs 38,320 per kg.
Silver coins spurted by Rs 1,000 to Rs 57,000 for buying and Rs 58,000 for selling of 100 pieces on upsurge in demand.
