Gold prices up at Rs 27,185 on wedding season demand

Gold prices surged by Rs 55 rising to Rs 27,185 per 10 grams on Monday amid high demand by jewellers in the ongoing wedding season and a firm global trend. The gold prices were up for the second straight day on Monday.

Silver prices were also up by Rs 90 at Rs 34,930 per kg on pick-up in demand from industrial units and coin makers.

Traders said a firming trend overseas where gold climbed after data showed a further contraction in China's manufacturing, adding to the case for haven assets as investors boost holdings, mainly influenced sentiment.

Globally, gold rose 0.5 per cent to $1,123.88 an ounce in Singapore.

In addition, continued buying by jewellers and retailers to meet the wedding season demand supported the upside, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity rose further by Rs 55 each to Rs 27,185 and Rs 27,035 per ten grams respectively. The precious metal had gained Rs 80 in Saturday's trade.

Sovereign, however, remained steady at Rs 22,500 per piece of eight grams in limited deals.

Silver ready also recovered by Rs 90 to Rs 34,930 per kg, while weekly-based delivery shed Rs 30 to Rs 34,720 per kg on lack of speculators' buying.

On the other hand, silver coins ruled flat at Rs 50,000 for buying and Rs 51,000 for selling of 100 pieces.