Gold rises on mild demand, silver surges for 8th session

Gold prices edged up by Rs 20 to Rs 31,100 per 10 grams at the bullion market today following mild demand from stockists and retailers.

Elsewhere, silver continued its uptrend for the eighth straight session, rising by Rs 445 to Rs 41,515 per kg on firm offtake by industrial units and coin makers.

Standard gold (99.5 per cent purity) advanced by Rs 20 to close at Rs 31,100 per 10 grams from Thursday's closing level of Rs 31,080.

Pure gold (99.9 per cent purity) also moved up by a similar margin to end at Rs 31,250 per 10 grams against Rs 31,230 earlier.

Silver (.999 fineness) firmed up by Rs 445 to conclude at Rs 41,515 per kg compared to Rs 41,070 yesterday.

Globally, gold prices drifted down early today on profit-taking after the dollar hit a seven-month peak but got support from investors who were skittish about prospects of a trade war and a correction in equity markets.

Gold briefly touched a one-month peak yesterday after the European Central Bank said it would hold off on interest rate hikes, but an accompanying surge in the dollar knocked back bullion.

Spot gold was trading down at USD 1,298.27 per ounce in early European trade, after reaching its highest since May 15 at USD 1,309.30 an ounce yesterday.

US gold futures for August delivery fell 0.6 per cent at USD 1,301 per ounce.

In other precious metals, silver rose to USD 17.18 an ounce, a day after it hit its highest since April 19 at USD 17.32 an ounce. The metal has risen about 2.2 per cent this week.