Gold surges by Rs 300 on high demand

Gold prices surged by Rs 300 to Rs 31,850 per ten gram at the bullion market on persistent buying by local jewellers amid a firm global trend.

Silver followed suit and shot up by Rs 360 to Rs 39,760 per kg due to increased offtake by industrial units and coin makers.

Traders said sentiment remained upbeat on positive global cues as the dollar index hovered near two-week lows, with markets awaiting key US inflation data and minutes from the Federal Reserve's March meeting.

Globally, gold rose 0.40 per cent to USD 1,344.40 an ounce and silver by 0.15 per cent to USD 16.57 an ounce in Singapore.

Moreover, increased offtake by local jewellers to meet demand from retailers at domestic spot market, fuelled the uptrend, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity rose by Rs 300 each to Rs 31,850 and Rs 31,700 per ten gram, respectively. It had gained Rs 200 in the previous three sessions.

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

Following gold, silver ready advanced by Rs 360 to Rs 39,760 per kg and weekly-based delivery by Rs 330 to Rs 38,775 per kg.

Silver coins however continued to be enquired at previous level of Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.