Gold rises on sustained jeweler's buying

New Delhi, Jul 6 (PTI) Gold prices rose by Rs 110 to Rs 31,690 per ten grams on the back of persistent buying by local jewellers even as the precious metal weakened overseas. However, silver slipped by Rs 100 to Rs 40,500 per kg due to reduced offtake by industrial units and coin makers.

Traders said increased buying by local jewellers at domestic spot market mainly kept gold prices higher, but a weak trend overseas capped the rise. Globally, gold fell 0.17 per cent to USD 1,255.20 an ounce and silver by 0.16 per cent to USD 16.01 an ounce in Singapore. In the national capital, gold of 99.9 per cent and 99.5 per cent purity surged by Rs 110 each to Rs 31,690 and Rs 31,540 per ten grams, respectively.

It had gained Rs 220 in the previous two sessions. Sovereign, however, remained flat at Rs 24,800 per piece of eight grams. On the other hand, silver ready fell by Rs 100 to Rs 40,500 per kg, while weekly-based delivery climbed by Rs 680 to Rs 39,880 per kg on speculative buying. Silver coins, however, continued to be traded at the previous level of Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.