Gold price rises to Rs 31,950 on spot demand

New Delhi-India (June 8)  Rising for the third straight session, gold prices advanced by Rs 80 to Rs 31,950 per 10 grams at the bullion market today on continued buying by local jewellers, shrugging off a weak trend overseas. Silver, however, held steady at Rs 41,000 per kg on scattered deals from industrial units.

Traders said increased buying by local jewellers at the domestic spot market kept gold prices higher. Trading sentiment was buoyed as a weak rupee against the dollar made imports of gold costlier.

However, a weak trend overseas, as investors remained cautious ahead of key events in the coming week such as US Federal Reserve policy meet and a summit between the United States and North Korea, capped the rise.

Globally, gold fell 0.12 per cent to $1,295.30 an ounce and silver shed 0.21 per cent to $16.64 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity rose further by Rs 80 each to Rs 31,950 and Rs 31,800 per 10 grams, respectively. The metal had gained Rs 270 in the last two days. Sovereign gold, however, remained flat at Rs 24,800 per piece of eight grams.

On the other hand, silver ready held steady at Rs 41,000 per kg, while weekly-based delivery traded higher by Rs 285 to Rs 40,370 per kg on speculative buying. Silver coins, however, remained flat at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.

BusinessLine