Gold price rises on global cues, silver weakens on reduced offtake

Gold prices rose by Rs 30 to Rs 27,830 per 10 grams at the bullion market on Tuesday amid a firming global trend and increased buying by jewellers to meet wedding season demand.

Silver, however, met with resistance and existing levels and fell by Rs 300 to Rs 39,700 per kg.

Traders said besides a firming trend overseas, pick up in buying by jewellers to meet wedding season demand mainly led to the rise in gold prices.

Globally, gold edged higher by 0.19 per cent to $1,225.80 an ounce in New York in Monday's trade.

In the national capital, gold of 99.9 and 99.5 per cent purity moved up by Rs 30 each to Rs 27,830 and Rs 27,680 per 10 grams, respectively.

The Sovereign, however, held steady at Rs 23,900 per piece of eight grams in restricted buying activity.

On the other hand, silver ready fell by Rs 300 to Rs 39,700 per kg and weekly-based delivery by Rs 360 to Rs 39,995 per kg as demand dropped at prevailing levels.

Meanwhile, silver coins continued to be traded at last level of Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces.