Gold rises on positive global cues, jewellers buying

Gold prices recovered by Rs 50 to Rs 30,250 per 10 grams at the bullion market on Tuesday, tracking a firm trend overseas amid fresh buying by jewellers.

However, silver remained under pressure and shed another Rs 100 to Rs 41,600 per kg. Traders said a firm trend globally where gold rose on speculation that the US central bank will be slow to tighten policy further, bolstered the metal's appeal, which also hit dollar.

Globally, gold added 0.2 per cent to $1,294.68 an ounce in Singapore up from Monday's $1,291.55 after it soared to $1,303.82 an ounce.

Pick up in buying by jewellers to meet retailers' demand for the ongoing wedding season, also supported the upside, traders added.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity recovered by Rs 50 each to Rs 30,250 and Rs 30,100 per 10 grams, respectively.

It had shed Rs 100 in the previous session.

Sovereign, however, held steady at Rs 23,300 per piece of eight grams.

On the other hand, silver ready fell by Rs 100 to Rs 41,600 per kg and weekly-based delivery by Rs 900 to Rs 41,300 per kg.

Silver coins, however, held unchanged at Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.

Image: A salesman holds gold to sell to a customer in a gold shop. Photograph: Damir Sagolj/Reuters