Gold advances amid investors' caution, silver firms up

Gold prices rose modestly at the bullion market here today on the back of increased offtake from retail consumers amid sustained local buying support.
Silver also firmed up owing to higher industrial demand.
Standard gold of 99.5 per cent purity increased by Rs 45 to settle at Rs 31,785 per 10 grams as compared to Wednesday's closing level of Rs 31,740.
Pure gold of 99.9 per cent purity also added a similar margin to finish at Rs 31,935 per 10 grams from Rs 31,890.
Silver ready (.999 fineness) gained by Rs 90 to conclude at Rs 50.630 per kg from Rs 50,540 yesterday. Though the vibe in the gold market is certainly upbeat at this juncture, investors and speculative investors turned a bit cautious after a stunning three-day rally largely driven by seasonal offtake backed by strong global sentiment, which pushed the shiny metal to near two-month high, traders said.

In overseas, the yellow metal climbed to four-week high pressurised by softer dollar amid growing expectation that the Federal Reserve will postpone tapering its bullion-friendly monetary stimulus programme for longer period.
Spot gold was bid higher at USD 1,336.50 an ounce in early European trade and spot silver was bid up at USD 22.61 an ounce.