Gold gains Rs 350, silver Rs 800 on good demand

Gold rose by Rs 350 to Rs 28,740 per 10 grams in the bullion market here today on buying by stockists and jewellery makers to meet the marriage season demand amid sharp rally in global markets.

Silver also gained Rs 800 to Rs 57,400 per kg on increased offtake on rising industrial demand. Traders said sentiment bolstered after gold rose in overseas market as easing eurozone debt crisis and political tension in the Middle East increased the demand for a haven.

In New York last night, gold surged by USD 26.20 to USD 1,760.30 an ounce, while silver gained 2.20 per cent to USD 34.35 an ounce. In addition, sustained buying by jewellers and retailers for the ongoing marriage season also provided support to the precious metals.

Back home, gold of 99.9 and 99.5 per cent purity surged by Rs 350 each to Rs 28,740 and Rs 28,600 per 10 grams, respectively. It had gained Rs 160 yesterday. Sovereigns followed suit and moved up by Rs 50 to Rs 23,450 per piece of eight grams. Likewise, silver ready spurted by Rs 800 to Rs 57,400 per kg and weekly-based delivery by Rs 655 to Rs 57,245 per kg.

The metal had gained Rs 600 in the previous session. Silver coins also jumped up by Rs 1,000 to Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.