Gold extends gains for third day; up Rs 20 on seasonal demand

Gold continued its upward movement for the third straight day in a row and rose up by another Rs 20 to Rs 20,700 per 10 grams in the bullion market today, largely on sustained buying by stockists and jewellers to meet the rising seasonal demand.

However, silver lacked necessary buying support from industrial units and traded around previous level of Rs 46,500 per kg for the second day.

Trading sentiments for the yellow metal remained firm on reports of it advancing in overseas markets on speculation that rising consumer prices will boost investor demand for the metal as a hedge against inflation.

Gold in overseas markets rose by 0.3 per cent to $1,377.97 an ounce. 

On the domestic front, gold of 99.9 and 99.5 per cent purity strengthened by Rs 20 each to Rs 20,700 and Rs 20,590 per 10 grams, respectively. The metal had gained Rs 190 in the previous two trading sessions.

However, sovereign remained unchanged at Rs 16,900 per piece of eight grams in the absence of buying support.

Silver ready ruled steady at Rs 46,500 per kg in restricted buying, while silver weekly-based delivery declined by Rs 25 to Rs 46,315 per kg for want of support.

Silver coins continued to be asked around previous levels of Rs 54,000 for buying and Rs 54,100 for selling of 100 pieces.