Gold rises on global cues, jewellers' buying

New Delhi: Gold prices rose by Rs 180 to Rs 31,600 per 10 gram at the bullion market Monday, largely driven by a firm trend overseas amid increased buying by local jewellers.

Silver followed suit and shot up by Rs 180 to Rs 37,680 per kg backed by increased offtake by industrial units and coin makers.

Traders said sentiment bolstered after gold inched up Monday in global markets as bargain-hunters bought the metal after prices dipped in the previous session, amid reports that the US is set to impose a new round of tariffs on Chinese imports.

Globally, gold rose 0.19 percent to USD 1,195.40 an ounce and silver by 0.39 percent to USD 14.08 an ounce in Singapore.

Besides, a depreciating rupee which again breached the the 72-mark against the dollar, making imports costlier, and a pick up in buying by local jewellers at domestic spot market, aided the uptrend, traders said.

In the national capital, gold of 99.9 percent and 99.5 percent purity climbed by Rs 180 each to Rs 31,600 and Rs 31,450 per 10 gram, respectively. It had gained Rs 20 on Saturday's trade.

Sovereign gold, however, remained flat at Rs 24,500 per piece of eight gram.

Following gold, silver ready rose by Rs 180 to Rs 37,680 per kg and weekly-based delivery by Rs 200 to Rs 37,195 per kg.

Silver coins, however, were unaltered at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.