Gold prices spurted by Rs 200 to Rs 31,850 per 10 grams on increased buying by jewellers and retailers at the bullion market Wednesday following the beginning of the auspicious week of 'Navratri'.
A weak trend overseas, however, capped the gains. Silver remained weak and traded RS 50 lower at Rs 39,200 per kg due to slackened demand from industrial units and coin makers.
Bullion traders said increased buying by local jewellers as well as retailers, driven by the beginning of festive demand in domestic spot markets led to the rise in gold prices.
Globally, gold fell by 0.10 per cent to USD 1,188.90 an ounce and silver by 0.03 per cent to USD 14.45 an ounce in Singapore. In the national capital, gold of 99.9 and 99.5 per cent purity surged by Rs 200 each to Rs 31,850 and Rs 31,700 per 10 grams, respectively.
It had lost Rs 250 in the previous two days. Sovereign gold, however, remained steady at Rs 24,600 per piece of eight grams on little doing. On the other hand, silver ready fell by Rs 50 to trade at Rs 39,200 per kg, while weekly-based delivery declined Rs 85 to Rs 38,650 per kg. Silver coins continued to be traded at a previous level of Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.