Gold extended gains for the consecutive second day on Tuesday and added Rs. 95 to Rs. 19,325 per ten grams on sustained buying by jewellers, anticipating upcoming festival and marriage season demand amid a firm global trend.
Silver also rose by Rs. 225 to Rs. 31,575 per kg on increased offtake by industrial units, on fears that a firming global trend might further push up its prices in the coming days. Besides, the metal in overseas market surged to 19.94 dollar an ounce, the highest since March 2008.
Market analysts said sustained buying by stockists and jewellery fabricators for the coming festival and marriage season amid firm global trend led to the rise in both gold and silver prices.
They attributed the rise in demand to upcoming festivals like Navratras and Diwali, as well as the beginning of marriage season in October.
Gold in overseas markets, which normally sets a price trend for domestic markets here, was trading at 1,251.30 dollar an ounce. This was inches closer to its all-time high of 1,265.30 dollar an ounce, witnessed in June this year.
The impact was felt in domestic bullion market too, as gold of 99.9 and 99.5 per cent purity advanced further by Rs. 95 each to Rs. 19,325 and Rs. 19,225 per ten grams respectively.
The precious metal had gained Rs. 90 on Monday.
However, sovereign remained steady at Rs. 15,000 per piece of eight grams in limited deals.
Silver, too, in line with the general firming trend, rose by Rs. 225 to Rs. 31,575 per kg, while week-based delivery was trading higher by Rs. 45 to Rs. 31,410 per kg.
Silver coins, on the other hand, lost Rs. 100 to Rs. 35,100 for buying and Rs. 35,200 for selling of 100 pieces, due to lack of the supporting sentiment.