Gold extends gains on positive global cues, jeweller-buying

Rising for the second straight day, gold prices advanced by Rs 15 to Rs 31,600 per ten gram at the bullion market today largely in sync with a firming trend overseas amid sustained buying by local jewellers.

Silver also reclaimed the Rs 41,000-mark by bouncing by Rs 250 per kg due to increased offtake by industrial units and coin makers.

Marketmen said apart from a firm trend overseas as weaker dollar raised demand for the precious metal, sustained buying by local jewellers at domestic spot market kept gold prices higher.

Globally, gold rose 0.16 per cent at USD 1,268.90 an ounce and silver by 0.89 per cent at USD 16.43 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity added Rs 15 each to Rs 31,600 and Rs 31,450 per ten gram, respectively. It had gained Rs 15 yesterday.

Sovereign gold, however, remained unaltered at Rs 24,800 per piece of eight gram.

Silver ready recovered by Rs 250 to Rs 41,000 per kg and weekly-based delivery strengthened by Rs 200 to Rs 39,795 per kg.

Silver coins, however, continued to be traded at previous levels of Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.