Gold prices zoom by Rs 250 at bullion market on global cues, festive demand

Gold prices on Saturday rose by Rs 250 to Rs 30,900 per 10 grams at the bullion market on brisk buying by local jewellers and firm trend overseas.

Silver followed suit and advanced by Rs 400 to Rs 38,250 per kg due to increased offtake by industrial units and coin makers.

Marketmen said sentiment bolstered after gold prices rose in global markets as the dollar came under pressure, raising investors' appetite for the precious metal as a safe haven investment.

Globally, gold rose 1.75 per cent to $1,205.30 an ounce and silver gained 2.14 per cent to $14.77 an ounce in New York in Saturday's trade.

Furthermore, continued buying by local jewellers and retailers ahead of "Raksha Bandhan" also supported the upside, they added.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity spurted by Rs 250 each to Rs 30,900 and Rs 30,750 per 10 gram, respectively. The precious metal had gained Rs 30 in yesterday's trade.

Sovereign, however, remained steady at Rs 24,500 per piece of eight grams.

In sync with gold, silver ready climbed Rs 400 to Rs 38,250 per kg and weekly-based delivery spurted by Rs 380 to Rs 37,000 per kg.

Silver coins, however, remained steady at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.