Gold shines on jewellers' buying

Gold today surged by Rs 165 to Rs 32,450 per ten gram on the back of pick-up in buying by local jewellers despite a weak trend overseas.

However, silver slumped below the Rs 41,000-mark by falling Rs 400 to Rs 40,900 per kg due to reduced offtake by industrial units and coin makers.

Traders attributed the recovery in gold prices to increased buying by local jewellers at domestic spot market but a weak trend overseas capped the rise.

Globally, gold fell 0.19 per cent to USD 1,310.50 an ounce and silver by 0.49 per cent to USD 16.41 an ounce in Singapore.

Besides, a depreciating rupee against the dollar made imports of gold costlier, thus fuelling the uptrend, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity bounced back by Rs 165 each to Rs 32,450 and Rs 32,300 per ten gram, respectively. It had lost Rs 115 in yesterday's trade.

Sovereign however held steady at Rs 24,800 per piece of eight gram in limited deals.

On the other hand, silver ready dropped by Rs 400 to Rs 40,900 per kg and weekly-based delivery by Rs 430 to Rs 40,040 per kg.

Silver coins also plunged by Rs 1,000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.