Gold climbs Rs 220 on jewellers' buying

Gold gained Rs 220 at Rs 31,170 per 10 gram at the bullion market today, snapping a two-day losing streak on fresh buying by local jewellers to meet the ongoing wedding season demand.

Silver also recovered by Rs 330 to Rs 39,230 per kg backed by increased offtake by industrial units and coin makers.

Traders said pick up in buying by local jewellers, triggered by ongoing wedding season at domestic spot market and a slightly better trend overseas, led to the recovery in gold and silver prices.

Globally, gold edged up by 0.02 per cent to USD 1,318.30 an ounce and silver by 0.31 per cent to USD 16.39 an ounce in New York yesterday.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity bounced back by Rs 220 each to Rs 31,170 and Rs 31,020 per 10 grams, respectively. It had lost Rs 650 in the previous two sessions.

Sovereign, however, continued to be traded at the previous level of Rs 24,800 per piece of eight grams.

In step with gold, silver ready rose by Rs 330 to Rs 39,230 per kg and weekly-based delivery by Rs 170 to Rs 37,905 per kg.

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