Gold rises for 3rd day, up Rs 50 to to Rs 31,800 per 10 grams

Gold rises for 3rd day, up Rs 50 to to Rs 31,800 per 10 grams New Delhi: Rising for the third day in a row, gold on Thursday added Rs 50 to to Rs 31,800 per 10 grams in the bullion market here on seasonal buying amid strong global cues, while silver gained Rs 400 to Rs 61,400 per kg on increased offtake.

Traders said stockists and retailers increased positions for the coming festivals as well as wedding season, leading to the rise in gold prices. Silver also saw increased demand from industrial units and coin makers.

A firm trend in the overseas market, where gold rose on speculation that Europe's debt crisis will boost demand for a protection of wealth also supported the sentiment, they added.

In London, gold rose by 0.4 percent to USD 1,770 an ounce, while silver gained 0.8 percent to USD 34.25 an ounce.

On the domestic front, gold of 99.9 and 99.5 percent purity added Rs 50 each to Rs 31,800 and Rs 31,600 per 10 grams, respectively. The metal had gained Rs 270 in the last session.

Sovereigns held steady at Rs 25,450 per piece of eight grams.

In line with a general firming trend, silver recovered by Rs 400 to Rs 61,400 per kg and weekly-based delivery by Rs 500 to Rs 62,155 per kg.

Silver coins spurted by Rs 1,000 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.

PTI