Gold adds gain on global cues, jewellers' buying

Rising for the second straight session, gold prices went up further by Rs 35 to Rs 29,225 per 10 grams at the bullion market today in tandem with a firm trend overseas and sustained buying by local jewellers.

Silver also advanced by Rs 25 to Rs 39,075 per kg due to increased offtake by industrial units and coin makers.

Bullion traders said apart from a firming global trend boosted by a weaker dollar and limited prospect of further hike in US interest rates, increased buying by local jewellers at domestic spot market, mainly kept gold prices higher.

Globally, gold rose by 0.53 per cent to USD 1,256.60 an ounce and silver by 0.97 per cent to USD 16.68 an ounce in New York in yesterday's trade.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity rose further by Rs 35 each to Rs 29,225 and Rs 29,075 per 10 grams, respectively. The metal had gained Rs 90 yesterday.

Sovereign, however, remained unaltered at Rs 24,400 per piece of eight grams.

Following gold, silver ready edged up by Rs 25 to Rs 39,075 per kg and weekly-based delivery by Rs 20 to Rs 38,485 per kg.

Silver coins, however, continued to be traded at the previous level of Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.