Gold extends gains on increased buying, global cues

Extending gains for the third session, gold prices today moved up by another Rs 220 to Rs 29,700 per ten gram in the national capital on increased buying by stockists and retailers amid firming global trend.

However, silver shed Rs 30 at Rs 43,600 per kg on lack of buying support from industrial units.

Traders said increased buying by stockists and retailers mainly kept gold prices remain higher for the third day.

They said firming global trend before the US Federal Reserve releases minutes of its March meeting, which may give clues on the outlook for the central bank's monetary policy, also boosted the sentiment.

Gold in London, which normally sets price trend on the domestic front, rose by 0.1 per cent to $1,309.54 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity shot up by Rs 220 each to Rs 29,700 and Rs 29,500 per ten gram respectively. It had gained Rs 245 in last two trade.

Sovereign followed suit and gained Rs 100 to Rs 24,900 per piece of eight gram.

On the other hand, silver ready declined by Rs 30 to Rs 43,600 per kg while weekly-based delivery rose by Rs 300 to Rs 43,230 per kg on speculators buying.

Silver coins spurted by Rs 1,000 to Rs 82,000 for buying and Rs 83,000 for selling of 100 pieces.

Image: A model displaying gold jewellery; Photograph: Reuters