Gold prices snap two-day falling spree, gain Rs 150; silver slips

Gold prices on Wednesday reversed a two-day losing streak with the prices for the yellow metal climbing by Rs 150 to Rs 31,950 per 10 grams at the bullion market. The gains came on the back of fresh buying by local jewellers even as the metal weakened overseas.

Silver, however, succumbed to selling pressure and shed Rs 10 to Rs 41,550 per kg.

"Increased buying by local jewellers at domestic spot markets. However, a weak trend overseas, as investors await outcome of the US Federal Reserve policy meeting, limited the rise," told traders to PTI. 

Besides, the depreciation in rupee against the dollar made imports of gold costlier, which supported the uptrend, they added. 

In New Delhi, gold of 99.9 per cent and 99.5 per cent purity surged by Rs 150 each to Rs 31,950 and Rs 31,800 per 10 grams, respectively. It had lost Rs 250 in the last two days.

Sovereign, however, remained unaltered at Rs 24,800 per piece of eight grams.

On the other hand, silver ready slipped by Rs 10 to Rs 41,550 per kg and weekly-based delivery fell Rs 40 to Rs 40,620 per kg.

Silver coins, however, remained steady at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.

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Overseas, gold prices held steady after falling to a one-week low in the previous session, as investors waited for clues on the pace of future interest rate hikes by the US Federal Reserve when its policy meeting concludes later in the day.

Spot gold was little changed at $1,295.02 per ounce after it touched a one-week low of $1,292.60 in the previous session. In Singapore, gold fell 0.15 per cent to $1,293.20 an ounce and silver declined by 0.21 per cent to $16.80 an ounce in Singapore.