Gold prices rise by Rs 120 on festive demand, global cues

Continuing its rising streak for the third straight day, gold prices rose by Rs 120 to Rs 27,400 per ten grams in the national capital on Wednesday on sustained buying by jewellers and retailers amid ongoing festive season demand and a firming global trend.

However, silver lacked necessary buying support from industrial units and coin makers and closed lower.

Traders said persistent buying by jewellers and retailers to meet the festive season demand and a firming global trend as the drop to this year's low lured Chinese buyers returning from a week-long break, mainly kept gold prices higher.

Globally, gold in Singapore, which normally determines price trend on the domestic front, climbed 0.5 per cent to $1,214.85 an ounce.

In Delhi, gold of 99.9 and 99.5 per cent purity added Rs 120 each to Rs 27,400 and Rs 27,200 per ten gram, respectively.

It had gained Rs 250 in the previous two days.        

Sovereign followed suit and traded higher by Rs 50 to Rs 24,200 per piece of eight gram.

On the other hand, silver ready fell by Rs 250 to Rs 39,000 per kg and weekly-based delivery by Rs 170 to Rs 38,455 per kg due to easing demand at prevailing levels.

Silver coins, however, continued to be traded at Rs 68,000 for buying and Rs 69,000 for selling of 100 pieces on scattered deals.