Gold gains Rs. 25 ahead of festive season amid firm global cues

A salesman fixes gold pieces in the window of a shop. File photo

Gold prices rose by another Rs. 25 in the bullion market today on the back of strong demand ahead of the festive season, coupled with a firming global trend.

Gold of 99.99 per cent and 99.5 per cent purity rose by Rs. 25 each to Rs. 18,425 and Rs. 18,325 per ten grams, respectively, following a Rs. 155 gain in the previous session.

However, sovereigns held steady at Rs. 14,700 per piece of eight grams in restricted buying at higher levels.

The bullish trading sentiment on gold at home mirrored the increased demand for the precious metal in global markets amid a continuous fall in the value of the US dollar.

Furthermore, speculation that the U.S. Federal Reserve will step up buying of bonds to prop up the American economy also pushed up gold prices.

Gold in overseas markets, which normally sets the price trend on the domestic front, added $ 3 to $ 1,208.40 an ounce.

In line with the general firming trend, silver ready added Rs. 105 to Rs. 29,475 per kg, while weekly-based delivery gained Rs. 65 to Rs. 29,195 per kg on the back of steady demand from industrial units and coin-makers.

Meanwhile, silver coins continue to be traded at around the previous level of Rs. 34,500 for buying and Rs. 34,600 for selling of 100 pieces.