Gold rises on jewellers' buying; silver slides

Gold prices advanced by Rs 40 to Rs 32,690 per 10 gram at the bullion market Tuesday on continued buying by local jewellers, even as the global trend marked a decline.

Silver, however, met with resistance at prevailing higher levels and shed Rs 210 to Rs 39,800 per kg.

Traders said sustained buying by local jewellers at the domestic spot market to meet increased demand kept gold prices higher but a weak trend overseas limited the gains.

Globally, gold fell 0.54 per cent to USD 1,282.40 an ounce and silver shed 0.74 per cent to USD 15.60 an ounce in New York.

A depreciating rupee against the dollar made imports of gold costlier, which supported the uptrend, they said.

The rupee weakened by 46 paise to quote at 70.14 (intra-day) against the dollar at the forex market.

In the national capital, gold of 99.9 per cent and 99.5 per cent purities rose by Rs 40 each to Rs 32,690 and Rs 32,540 per 10 gram, respectively. The metal had gained Rs 150 in Monday's trade.

Sovereign gold, however, remained flat at Rs 25,200 per piece of 8 gram.

On the other hand, silver ready fell by Rs 210 to Rs 39,800 per kg and weekly-based delivery by Rs 263 to Rs 39,056 per kg.

Silver coins remained flat at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.