Gold, silver extend gains on sustained demand

Gold prices rose further by Rs 140 per 10 grams to Rs 30,690 per 10 grams at the domestic bullion market here today following sustained demand from jewellers and traders.

Silver too surged by Rs 305 per kg owing to persistent offtake from industrial users.

Traders said increased buying by local jewellers at domestic spot market to meet retailers' demand kept gold prices higher.

Standard gold (99.5 purity) climbed by Rs 140 to end at Rs 30,690 per 10 grams from Monday's closing of Rs 30,550.

Pure gold (99.9 purity) also moved up by a similar margin to finish at Rs 30,840 per 10 grams as compared to Rs 30,700 previously.

Silver (.999 fineness) advanced by Rs 305 per kg to Rs 38,340 as against Rs 38,035 yesterday.

Globally, gold prices were trading steady early today but poised for gains as investors awaited potential US action against the suspected use of chemical weapons in Syria as well as more trade friction.

Spot gold was barely changed, at USD 1,335.73 an ounce in early European trade, having risen to a near one-week high of USD1,338.12 earlier in the session.

Among other precious metals, silver gained to USD 16.48 an ounce.