Gold rallies on jewellers' buying, positive global cues

Gold prices on Tuesday rose by Rs 130 to Rs 32,350 per 10 gram at the bullion market on increased buying by local jewellers amid positive global trends.

Silver also rallied by Rs 250 to Rs 39,750 per kg backed by increased offtake by industrial units and coin makers.

Traders said apart from a firm trend overseas, fresh buying by local jewellers at domestic spot market led to the recovery in gold prices. The precious metal had lost Rs 50 on Monday.

Globally, gold rose 0.79 per cent to USD 1,232.30 an ounce and silver by 0.89 per cent to USD 14.76 an ounce in Singapore as political tensions between Saudi Arabia and Western powers raised demand for the precious metal as a safe haven.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity rose by Rs 130 each to Rs 32,350 and Rs 32,200 per 10 gram, respectively.

Sovereign gold, however, remained flat at Rs 24,700 per piece of 8 gram.

Following gold, silver ready rose by Rs 250 to Rs 39,750 per kg and weekly-based delivery by Rs 251 to Rs 39,010 per kg.

Silver coins, however, continued to be traded at previous level of Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.