New Delhi: Gold prices jumped by Rs 220 to Rs 31,000 per ten grams on Wednesday amid increased buying by jewellers in the domestic spot market even as the metal weakened overseas.
Besides, the rupee's depreciation to over six-month low of 65.75 (intra-day) against the dollar, making imports costlier, too fuelled the upward trend.
In the national capital, gold of 99.9 percent and 99.5 percent purity surged Rs 220 each to Rs 31,000 and Rs 30,850 per ten gram, respectively. The precious metal had gained Rs 80 yesterday.
On the other hand, silver ready fell sharply by Rs 470 to Rs 40,800 per kg while weekly-based delivery lost Rs 570 to Rs 39,940 per kg.
Globally, gold inched lower today, weighed down by a stronger dollar amid prospects for a December interest rate hike in the United States and ahead of the unveiling of a tax plan by Donald Trump's administration.
Spot gold had declined 0.1 percent to USD 1,291.81 per ounce.
In the previous session, prices fell 1.3 percent in their biggest loss in over two weeks following comments by US Federal Reserve Chair Janet Yellen that the central bank needed to continue gradual rate hikes despite broad uncertainty about the path of inflation
US gold futures for December delivery fell 0.5 percent to USD 1,294.90.