Gold surges by Rs 170 on local jewellers' demand, global cues

New Delhi: Gold prices surged by Rs 170 to Rs 33,220 per 10 gram at the bullion market here on Monday on increased buying by local jewellers amid a firm global trend.

Silver, however, remained weak and fell by another Rs 70 to Rs 39,200 per kg due to decreased offtake by industrial units and coin makers.

Traders said sentiment turned upbeat on the back of a pick-up in buying support from local jewellers and retailers amid positive global cues as US recession fears boosted appeal for the bullion as safe-haven asset.

Globally, gold rose 0.19 percent to USD 1,316.90 an ounce and silver by 0.12 percent to USD 15.54 an ounce in New York Monday.

In the national capital, gold of 99.9 percent and 99.5 percent purities rose by Rs 170 each to Rs 33,220 and Rs 33,050 per 10 gram, respectively. It had gained Rs 80 on Friday.

Sovereign gold, however, held steady at Rs 26,400 per piece of eight gram.

On the other hand, silver ready slipped by Rs 70 to Rs 39,200 per kg and weekly-based delivery by Rs 8 to Rs 38,364 per kg.

Silver coins, however, continued to be enquired at the previous level of Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.