Gold extends gains on sustained jewellers' buying

Gold advanced for the third day, gaining Rs 20 to Rs 31,150 per ten grams at the bullion market today on sustained buying by jewellers to meet festive season demand from retailers, even as the metal weakened overseas.

Silver, however, fell by Rs 350 to Rs 46,650 per kg.

Marketmen said increased buying by jewellers to meet rising festive season demand from retailers at domestic spot market mainly kept gold prices higher.

However, a weak global trend where gold dropped ahead of the release of the Federal Reserve's minutes from its July meeting after central bank officials signalled that US interest rates could be increased at least once this year, capped the rise.

Globally, gold fell 0.4 per cent to USD 1,340.89 an ounce in Singapore as the dollar rose.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity edged up by Rs 20 each to Rs 31,150 and Rs 31,000 per 10 grams, respectively. It had gained Rs 80 in the previous two trading sessions.

Sovereign, however, remained flat at Rs 24,300 per piece of eight grams.

On the other hand, silver ready dropped by Rs 350 to Rs 46,650 per kg and weekly-based delivery by Rs 490 to Rs 46,260 per kg.

Silver coins however remained steady at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.