Gold price rises by Rs 100 to Rs 30,550 per ten grams

New Delhi: Gold rallied by Rs 100 to Rs 30,550 per ten gram at the bullion market on Monday, driven by a firm trend overseas amid fresh buying by local jewellers.

Silver followed suit and edged up by Rs 100 to Rs 40,400 per kg due to increased offtake by industrial units and coin makers.

Traders said gold gained on a firm trend overseas as the dollar held close to a two-month low, raising appeal of the precious metal as a safe haven. Besides, fresh buying by local jewellers to meet ongoing wedding season demand at domestic spot market led to the recovery in gold prices.

Globally, gold rose 0.27 percent to USD 1,291.40 an ounce and silver by 0.18 percent to USD 17.04 an ounce in Singapore.

In the national capital, gold of 99.9 percent and 99.5 percent purity rebounded by Rs 100 each to Rs 30,550 and Rs 30,400 per ten gram, respectively. The precious metal had lost Rs 100 in last two sessions.

Sovereign however remained flat at Rs 24,700 per piece of eight gram.

Silver ready went up by Rs 100 to Rs 40,400 per kg and weekly-based delivery by Rs 90 to Rs 39,330 per kg.

Silver coins however continued to be traded at previous level of Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.