Gold price climbs Rs 230 to Rs 29,665 per 10 grams

New Delhi: Gold prices recovered by Rs 230 to Rs 29,665 per 10 grams largely in line with a firming trend overseas amid increased buying by local jewellers.

Silver followed suit and recaptured the Rs 38,000-mark by rising Rs 680 to Rs 38,280 per kg due to increased offtake by industrial units and coin makers.

At the Multi Commodity Exchange (MCX), gold for delivery in February rose by Rs 203, or 0.72 percent, to Rs 28,398 per ten grams.

In Mumbai, standard gold (99.5 purity) moved up by Rs 255 to end at Rs 28,610 compared to Wednesday's closing level of Rs 28,355. Pure gold (99.9 purity) also rose by the same amount to settle at Rs 28,760 per 10 grams against Rs 28,505 earlier. Silver (.999 fineness) went up by Rs 670 to end at Rs 37,120 per kg as against Rs 36,450 yesterday.

As per experts, sentiment bolstered after gold edged higher in global markets as the dollar was nearly unchanged after tumbling in the previous session following the US Federal Reserve's widely expected decision to raise interest rates.

In addition, increased buying by local jewellers to meet the wedding season demand at the domestic spot market supported the uptrend.

Globally, gold pulled back from a one-week high when the dollar recovered after tumbling a day earlier following the US Federal Reserve's decision to hike interest rates. Spot gold had edged up 0.1 per cent to USD 1,256.25 an ounce at early trade.