Gold gains Rs 54 on weaker rupee, global cues

Gold prices rose Rs 54 to Rs 40,807 per 10 gram in the national capital on Tuesday due to a weaker rupee and global cues, according to HDFC Securities.

The yellow metal had closed at Rs 40,753 per 10 gram on Monday.

However, silver prices fell Rs 56 to Rs 47,804 per kg from Rs 47,860 per kg in the previous trade.

"Spot gold for 24 karat in Delhi was trading up by Rs 54, supported by a weaker rupee and early strength in global gold prices," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

The spot rupee was trading around 11 paise weaker against the dollar during the day, he added.

The rupee depreciated 6 paise to 71.17 against the US dollar in opening trade on Tuesday, tracking weak domestic equity market.

In the international market, gold was trading at USD 1,559 per ounce, while silver was quoting at USD 18 per ounce on the COMEX.

In the global market, gold prices traded volatile with spot international gold prices at COMEX traded near USD 1,559, declining from the highs made near USD 1,568 for the day, Patel said.

"Gold prices may trade sideways to up in the near term with support at USD 1,550 and resistance at USD 1,580," he said.