Gold jumps by Rs 290 on global cues, wedding season demand

Gold prices jumped by Rs 290 to regain the Rs 26,000-level at the bullion market on Saturday on the back of a firm trend overseas and pick-up in purchases by jewellers to meet wedding season demand.

However, silver remained weak and lost Rs 200 at Rs 33,850 per kg on reduced off-take by industrial units and coin makers.

Bullion traders attributed the rally in precious metals to a firm trend overseas and fresh buying by jewellers to meet the ongoing wedding season demand.

Also read: Gold prices increase by Rs 115, costs Rs 27,300 now!

Gold rates in New York, which normally determine price trend on the domestic front, rose by 0.25% to $1,074.20 (Rs 72,131.94) an ounce in Friday's trade.

In the national capital, gold of 99.9 and 99.5% purity zoomed by Rs 290 each to Rs 26,000 and Rs 25,850 per ten grams, respectively.

The precious metal had lost Rs 130 in previous two days.

Sovereign, however, remained steady at Rs 22,200 per piece of eight grams in limited deals.

Also read: Gold prices plunge by Rs 70 to Rs 26,800, low demand

On the other hand, silver ready dipped below Rs 34,000 by losing Rs 200 to Rs 33,850 per kg and weekly-based delivery was down by Rs 265 to Rs 33,980 per kg.

Meanwhile, silver coins continued to be traded at last level of Rs 48,000 for purchases and Rs 49,000 for selling of 100 pieces.