Gold price rises by Rs 225 to Rs 28,985 per 10 grams

New Delhi: Gold prices maintained an upward trend for the second straight day Thursday, gaining Rs 225 to Rs 28,985 per 10 grams at the bullion market on firm global cues and increased buying by local jewellers.

On the other hand, silver cracked below the Rs 39,000- mark by falling Rs 500 to Rs 38,800 per kg due to reduced offtake by industrial units.

Traders said political turmoil in the US reduced expectations of aggressive interest rate rise this year, pushing down US bond yields and raising demand for precious metals as a safe haven.

Globally, gold was trading 1.96 percent higher at USD 1,260.90 an ounce in New York in yesterday's trade.

Besides, sustained buying by local jewellers at domestic spot market helped the momentum.

In the national capital, gold of 99.9 and 99.5 percent purity advanced by Rs 225 each to Rs 28,985 and Rs 28,835 per 10 grams, respectively. The precious metal had gained Rs 160 in yesterday's trade.

Sovereign, however, remained flat at Rs 24,400 per piece of eight grams.

However, silver ready fell by Rs 500 to Rs 38,800 per kg and weekly-based delivery shed Rs 135 to Rs 38,865 per kg.

Silver coins, however, spurted by Rs 1,000 at Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.