India gold rose to Rs 29,250 per 10 grams on a firming global trend and seasonal demand

Gold extended its gains today and rose by Rs 10 to Rs 29,250 per 10 grams on a firming global trend and seasonal demand. However, silver continued its downward movement for the second straight session by falling Rs 250 to Rs 55,600 per kg.

The trading sentiment in gold remained firm on demand for the ongoing marriage season and reports of the precious metal rebounding from one-month low overseas, as investors sought to protect their wealth against financial market turmoil driven by euro-zone debt crisis.

Gold in global markets, which normally sets the price trend on the domestic front, rose by 0.7 per cent to USD 1,688.25 an ounce in Singapore, after falling to its lowest level since October 25.

Shifting of funds to surging stock markets for quick gains further influenced the market sentiment.

However, silver remained under pressure on selling by stockists and industrial units refrained from purchasing and look for better opportunity amid weakening global trend.

Gold of 99.9 and 99.5 per cent purity gained Rs 10 each to Rs 29,250 and Rs 29,110 per ten gram. The metal had gained Rs 35 in the previous session. Sovereigns held steady at Rs 23,300 per piece of eight grams.

On the other hand, silver ready fell by Rs 250 to Rs 55,600 per kg, after falling Rs 550 yesterday. Silver weekly- based delivery lost Rs 125 to Rs 55,060 per kg. Silver coins continued to be asked at previous level of Rs 63,000 for buying and Rs 64,000 for selling of 100 pieces. – PTI