A divergent trend was seen on the bullion market on Monday as gold prices extended gains for the second straight day by adding Rs 100 to Rs 29,800 per 10 gm on festival demand while silver lacked necessary buying support and declined.
Traders said sustained buying for the festive season demand mainly helped gold prices for the third straight day while silver lacked necessary buying support and declined.
Some funds seen shifting from weakening equity to gold also influenced the yellow metal prices, they said.
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In the national capital, gold of 99.9 and 99.5 per cent purity rose further by Rs 100 each to Rs 29,800 and Rs 29,600 per 10 gm. It had gained Rs 70 in last two sessions. Sovereign remained steady at Rs 24,350 per piece of eight gram in limited deals.
On the other hand, silver ready fell by Rs 150 to Rs 52,300 per kg and weekly-based delivery by Rs 115 to Rs 52,715 per kg. However, silver coins continued to be asked around previous level of Rs 61,000 for buying and Rs 62,000 for selling of 100 pieces.