Gold sparkles again, climbs Rs 260 on firm global cues

Gold prices surged back by Rs 260 to Rs 31,860 per 10 grams at the bullion market on Wednesday on firm cues from global markets and renewed buying by local jewellers.

Silver prices also rose by Rs 250 to Rs 40,750 per kg, supported by higher offtake by industrial units and coin makers.

Experts said sentiment turned better largely in sync with a firming trend overseas where gold prices inched up on a weaker dollar and lower treasury yields, but expectations of a US rate rise next week kept a lid on gains.

Globally, gold rose by 0.15 per cent to $1,297.70 an ounce and silver by 0.52 per cent to $16.55 an ounce in Singapore.

Besides, pick up in buying by local jewellers at domestic spot market, supported the upmove, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity bounced back by Rs 260 each to Rs 31,860 and Rs 31,710 per 10 grams, respectively. It had lost Rs 50 in yesterday's trade.

Sovereign gold continued to trade flat at Rs 24,800 per piece of eight grams in scattered deals.

Following gold, silver ready shot up by Rs 250 to Rs 40,750 per kg while weekly-based delivery gained Rs 275 to Rs 39,850 per kg.

Meanwhile, silver coins remained unaltered at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.

(With inputs from agencies)