Gold prices rose by Rs 260 to Rs 31,100 per 10 gram in the national capital on Friday on the back of retail purchases ahead of festive season, helping the precious metal cut short a three-day string of losses.
Trading sentiment improved as retail customers and investors purchased precious metals at attractive lower levels to meet upcoming festival demand and shifting of funds from melting equities to bullion.
The up-move was further supported on firming trend in overseas markets where gold rose alongside commodities from crude oil to copper, according to commodity experts.
The gold in New York, which set trend of prices on domestic front, rose 0.1 per cent to $ 1,659.85 an ounce and silver by 0.2 per cent to $ 30.43 an ounce.
Official data showed that China’s gold imports rose to a seven-month high in November. Demand in the country typically picks up before Christmas and lasts through the Lunar New Year in February.
On the domestic front, the gold of 99.9 and 99.5 per cent purity jumped up by Rs 260 each to Rs 31,100 and Rs 30,900 per 10 gram respectively, while sovereign held unchanged at Rs 25,400 per piece of 8 gram.
Silver ready shot up by Rs 600 to Rs 58,500 per kg and weekly-based delivery by Rs 585 to Rs 58,580 per kg. Silver coins continued to be asked at previous level of Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.