Gold gains Rs 50, silver Rs 400 on global cues

Gold also advanced in global markets on speculation that Federal Reserve may offer fresh stimulus

Both gold and silver recovered in the bullion market here today on fresh buying by stockists and investors supported by a firming global trend.

While gold rose by Rs 50 to Rs 31,350 per 10 grams, silver added Rs 400 to Rs 58,000 per kg.

Traders said sentiment buoyed after gold advanced in global markets on speculation that Federal Reserve may offer fresh stimulus to revive economic growth and as investor holdings climbed to an all-time high.

In Singapore, the yellow metal rose 0.2% to $1,669.95 an ounce, while silver advance by 0.3% to $30.96 an ounce.

Some retail buying for the coming marriage season and shifting of funds by investors from weakening equity markets to bullion also fuelled the uptrend, they added.

On the domestic front, gold of 99.9 and 99.5% purity gained by Rs 50 each to Rs 31,350 and Rs 31,150 per 10 grams, respectively. It had lost Rs 100 yesterday.

Sovereign held steady at Rs 24,750 per piece of eight grams.

Silver ready recovered by Rs 400 to Rs 58,000 per kg, while weekly-based delivery lacked necessary follow up support and lost Rs 300 at Rs 57,700 per kg.

Silver coins rose by Rs 1,000 to Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.