Gold moves north to Rs 31,000, silver softens

Gold prices jumped Rs 220 to Rs 31,000 per ten gram at the bullion market today amid increased buying by jewellers in the domestic spot market even as the metal weakened overseas.

However, silver slumped by Rs 470 to Rs 40,800 per kg on lack of buying support from industrial units and coin makers.

Traders said gold prices firmed up on rising demand from local jewellers and retailers, driven by ongoing festive season.

Besides, the rupee's depreciation to over six-month low of 65.75 (intra-day) against the dollar, making imports costlier, too fuelled the upward trend, they added.

Globally, gold fell 0.12 per cent to USD 1,292 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity surged Rs 220 each to Rs 31,000 and Rs 30,850 per ten gram, respectively. The precious metal had gained Rs 80 yesterday.

Sovereign however remained unchanged at Rs 24,700 per piece of eight gram.

On the other hand, silver ready fell sharply by Rs 470 to Rs 40,800 per kg while weekly-based delivery lost Rs 570 to Rs 39,940 per kg.

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