Gold prices spurted by Rs 290 to 3-week high of Rs 31,000 per 10 grams on the eve of Diwali at the bullion market on Wednesday on increased buying by local jewellers to meet festive demand. A weak trend overseas however capped the gains. Silver held steady at Rs 41,000 per kg in limited deals from industrial units and coin makers. Bullion traders said increased buying by local jewellers, driven by Diwali festival demand in domestic spot markets, mainly led to rise in gold prices.
Globally, gold fell by 0.12 per cent to $ 1,283.20 an ounce and silver by 0.06 per cent to $16.98 an ounce in Singapore. In the national capital, gold of 99.9 and 99.5 per cent purity surged by Rs 290 each to Rs 31,000 and Rs 30,850 per 10 grams respectively, a level last seen on September 27. It had lost Rs 140 on Tuesday.
Sovereign, however, remained steady at Rs 24,700 per piece of eight grams on little doing. On the other hand, silver ready held steady at Rs 41,000 per kg, while weekly-based delivery fell by Rs 130 to Rs 39,860 per kg. Silver coins continued to be traded at previous level of Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.