Gold extends rise from 1-week low

Gold extended its gains further on Thursday afternoon, after hitting its lowest level in a week on Tuesday, in line with overseas markets, drawing physical traders and pushing premiums a tad higher.

A stronger rupee back home restricted the gains, traders said.

The most-active gold for gold for February delivery on the Multi Commodity Exchange was 0.28% higher at Rs 27,735 per 10 grams, recovering from a one-week low of Rs 27,476 struck on Tuesday.

The rupee, which traded firm on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Gold traders continued to stock unabated as jewellers prepared for the weddings slated later in the week.

Wedding season in the country will restart on January 15 and continue until April, after pausing for a few weeks deemed inauspicious for nuptials.

"Sales are good and are continuing since last 10 days. Lucknow itself is selling about 150 kgs daily compared to 100 kgs in December," said Lokesh Kumar Agarwal, Brijwasi Bullions and Jewellers.

Premiums charged on London prices edged up to $1.9 an ounce as against $1.1 last week.

Silver extended rise for a second session. Silver for March delivery was up 0.52% higher at Rs 52,883 per kg, up 0.52% on day.