Gold rises to Rs 22,350 on seasonal demand

New Delhi: Both gold and silver prices spurted on brisk buying by stockists and jewellery makers for the ongoing marriage season amid firm global cues.

While gold surged by Rs 80 to Rs 22,350 per 10 grams, silver gained Rs 550 to Rs 53,750 per kg.

Trading sentiments turned better after gold advanced by 0.4 per cent to USD 1,493.10 an ounce in the global markets, as signs of a slow down in global economy, financial turmoil in Europe, and a declining dollar bolstered the demand for the precious metals as a store of value.

Silver also moved up by 1.1 per cent to USD 34.31 an ounce. Traders added that scattered buying by retailers for the ongoing marriage season further influenced the trading sentiment to some extent.

Also, volatile equity markets forced some investors to invest their money in the rising bullion, which further supported the uptrend in the previous metals. On the domestic front, silver ready recovered by Rs 550 to Rs 53,750 per kg and weekly-based delivery gained Rs 560 to Rs 53,150 per kg.

Silver coins followed suit and spurted by Rs 2,000 to Rs 60,000 for buying and Rs 61,000 for selling of 100 pieces. In line with a general firming trend, gold of 99.9 and 99.5 per cent purity shot up by Rs 80 each to Rs 22,350 and Rs 22,230 per 10 grams, respectively. However, sovereigns continued to be asked at previous level of Rs 18,500 per piece of eight grams.