Gold price retakes Rs 31,000-level on demand push, soars Rs 650 per 10 grams

New Delhi: Gold on Thursday took strength from a positive trend overseas by surging Rs 650 per 10 grams to seize the Rs 31,000 level, driven up by fresh local buying.

But silver fell sharply by Rs 350 to Rs 41,500 per kg, mainly due to softening demand by industrial units and coin makers.

Tension still brews on the Korean front as North Korea is digging in its heels over the UN resolution and the sanction over its most powerful nuclear test, analysts said.

Any major uncertainty, according to experts, is directly proportional to the appeal of safe haven assets. Simply put, the higher the turmoil, the greater the risk aversion, which pushes investors more towards safe asset classes, including gold.

Bullion traders said robust demand from local jewellers as well as retailers too fed the rally in gold prices.

Globally, gold rose by 0.08 percent to USD 1,323.60 an ounce after hitting a two-week low of USD 1,318.96. Silver too edged up 0.03 percent to USD 17.75 an ounce in Singapore.

In the national capital, gold of 99.9 percent and 99.5 percent purity surged Rs 650 each to Rs 31,000 and Rs 30,850 per 10 grams, respectively. The precious metal had lost Rs 650 in the last two days.

Sovereign continued to be traded at the previous level of Rs 24,700 per piece of eight grams.

In contrast, silver ready dropped Rs 350 to Rs 41,500 per kg and weekly-based delivery cracked below the 41,000-mark by sliding Rs 370 to Rs 40,930 per kg.

Silver coins, however, held steady at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.