Gold up Rs 105 on strong demand, firm global cues

Gold on Saturday rose by Rs 105 to Rs 28,410 per 10 grams on increased buying by stockists and jewellers to meet demand for the ongoing marriage season, amid a firm global trend.

However, silver lacked necessary buying support at existing higher levels and lost Rs 470 to Rs 56,500 per kg.

Marketmen said the trading sentiment in gold remained firm on the back of sustained buying by stockists and jewellers, driven by marriage season demand amid strong global cues.

On Friday night, in New York, gold rose by USD 16.80 to USD 1,737.30 an ounce, the highest level since December 7, as a weak dollar raised appeal for the precious metal as an alternative asset.

On the domestic front, gold of 99.9 and 99.5 per cent purity added Rs 105 each to Rs 28,410 and Rs 28,270 per 10 grams, respectively. It had gained Rs 535 on Friday.

However, sovereigns ended flat at Rs 23,350 per piece of eight grams in scattered deals.

On the other hand, silver ready fell by Rs 470 to Rs 56,500 per kg but weekly-based delivery strengthened by Rs 825 to Rs 57,225 per kg on increased support from speculators.

Silver coins held steady at Rs 67,000 for buying and Rs 68,000 for selling of 100 pieces.