Gold rises on festive demand, weak rupee

Gold prices rose by Rs 140 to Rs 31,340 per 10 gram at the bullion market today on persistent buying by local jewellers and a firm global trend.

Besides, a depreciating rupee which slumped to a historic low of 71 against the dollar, making imports costlier, aided the uptrend.

However, silver remained unaltered at Rs 38,300 per kg in limited deals from industrial units and coin makers.

Marketmen said besides a firm global trend, increased buying by local jewellers to meet the ongoing festive season demand at the domestic spot market, mainly kept the gold prices higher.

Globally, gold rose 0.60 per cent to USD 1,206.80 an ounce and silver by 0.90 per cent to USD 14.65 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity advanced by Rs 140 each to Rs 31,340 and Rs 31,190 per ten gram, respectively. It had gained Rs 120 in yesterday's trade.

Sovereign however remained flat at Rs 24,500 per piece of eight gram.

On the other hand, silver ready remained steady at Rs 38,300 per kg, while weekly-based delivery fell by Rs 125 to Rs 36,955 per kg for want of buying support.

Silver coins however continued to be traded at the previous level of Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.