Gold regains sheen on firm global cues, jewellers' buying

New Delhi: Gold prices recovered by Rs 140 to Rs 31,500 per 10 grams at the bullion market on Saturday, largely driven by a firm trend overseas amid pick-up in buying by local jewellers at the domestic spot market.

Silver also rebounded by Rs 320 to Rs 39,530 per kg on increased offtake by industrial units and coin makers.

Bullion traders attributed the recovery in gold prices to a firm trend overseas as the weakness in dollar boosted demand for the precious metal as a safe-haven.

Globally, gold rose by 0.43 per cent to USD 1,322.60 an ounce and silver by 0.27 per cent to USD 16.51 an ounce in New York on Friday.

In addition, increased buying by local jewellers to meet wedding season demand fuelled the uptrend, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity went up by Rs 140 each to Rs 31,500 and Rs 31,350 per 10 grams, respectively.

It had lost Rs 490 in the previous two sessions. Sovereign, however, held steady at Rs 24,800 per piece of eight grams.

Following gold, silver ready rose by Rs 320 to Rs 39,530 per kg and weekly-based delivery by Rs 290 to Rs 38,335 per kg.

Silver coins, however, remained flat at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.