Gold price gains further, up Rs 55 at Rs 31,130 per 10 grams

New Delhi: Gold prices advanced for a second day by gaining Rs 55 to Rs 31,130 per 10 grams at the bullion market Tuesday, tracking a firming trend overseas amid increased buying by jewellers to meet rising demand from retailers at domestic spot market.

Silver also recovered by Rs 500 to Rs 47,000 per kg due to increased offtake from coin makers and other consuming industries.

Traders said a firming trend overseas where gold advanced amid speculation that the US central bank will be slow to raise interest rates, with investors counting down to the release of the Federal Reserve?s minutes of its July meeting as the dollar declined, mainly buoyed the sentiment here.

Globally, gold rose 0.6 percent to USD 1,347.16 an ounce and silver by 0.56 percent to USD 19.85 an ounce in Singapore.

Besides, an increased buying by jewellers to meet festive season demand from retailers at domestic spot markets supported the upside, they said.

In the national capital, gold of 99.9 percent and 99.5 percent purity gained Rs 55 each to Rs 31,130 and Rs 30,980 per 10 grams respectively. It had edged up by Rs 25 in Saturday's trade.

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

Tracking gold, silver ready rebounded by Rs 500 to Rs 47,000 per kg while weekly-based delivery by Rs 625 to Rs 46,750 per kg.

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