Gold rises on firm global cues, jewellers' buying

Gold prices hardened by Rs 50 to Rs 31,700 per 10 gram at the bullion market Friday in line with a firming trend overseas amid increased buying by local jewellers.

However, silver shed Rs 20 to Rs 38,080 per kg on lack of buying support from consuming industries.

Traders said gold edged up in sync with a firming global trend where prices of the metal rose Friday to a one-week high as the dollar weakened on receding fears of a full-blown China-US trade war.

In addition, persistent buying by local jewellers at the domestic spot market and diversion of funds from melting equity also supported the upmove in gold, they said.

Globally, gold rose 0.12 per cent to USD 1,208.30 an ounce and silver by 0.38 per cent to USD 14.36 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity recovered by Rs 50 each to Rs 31,700 and Rs 31,550 per 10 gram, respectively. It had shed Rs 10 yesterday.

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

On the other hand, silver ready eased by Rs 20 to Rs 38,080 per kg, while weekly-based delivery rebounded by Rs 255 to Rs 37,575 per kg on speculative buying.

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