Gold extends gains for third day; up Rs20 on seasonal demand

Gold continued its upward movement for the third straight day in a row and rose up by another Rs20 to Rs20,700 per 10 grams in the bullion market today, largely on sustained buying by stockists and jewellers to meet the rising seasonal demand.

However, silver lacked necessary buying support from industrial units and traded around previous level of Rs46,500 per kg for the second day.

Trading sentiments for the yellow metal remained firm on reports of it advancing in overseas markets on speculation that rising consumer prices will boost investor demand for the metal as a hedge against inflation.

Gold in overseas markets rose by 0.3% to $1,377.97 an ounce.

On the domestic front, gold of 99.9 and 99.5% purity strengthened by Rs20 each to Rs20,700 and Rs20,590 per 10 grams, respectively. The metal had gained Rs190 in the previous two trading sessions.

However, sovereign remained unchanged at Rs16,900 per piece of eight grams in the absence of buying support.

Silver ready ruled steady at Rs46,500 per kg in restricted buying, while silver weekly-based delivery declined by Rs25 to Rs46,315 per kg for want of support.

Silver coins continued to be asked around previous levels of Rs54,000 for buying and Rs54,100 for selling of 100 pieces.