Gold extends gains on firm demand, silver also rises

Gold prices extended their uptrend at the domestic bullion market today on consistent demand from jewellery stockists and investors in the ongoing festive season amid bullish overseas cues.

Silver rose sharply on the back of heavy industrial demand coupled with speculative buyout.

Standard gold (99.5 purity) edged higher by Rs 55 to settle at Rs 26,960 per 10 grams from Wednesday's closing level of Rs 26,905.

Pure gold (99.9 purity) also moved up by a similar margin to end at Rs 27,110 per 10 grams against Rs 27,055.

Silver (.999 fineness) jumped by Rs 230 to conclude at Rs 39,615 per kg compared to Rs 39,385 yesterday.

In international market, the shiny metal rose to a two -week high on easing fears of an imminent rate hike after US Federal Reserve's most recent policy minutes unveiled that key policymakers were concerned over a strong dollar's impact on inflation in the backdrop of sluggish global growth outlook.

Spot gold was higher at USD 1,226.39 an ounce in early European trade.