Gold rises on jewellers' buying

Bullion: Divergent conditions emerged at the bullion market during the week with gold prices edging up on buying by local jewelers despite weak global cues.

In contrast, silver prices drifted lower on reduced offtake by industrial units and coin makers.

Traders said some buying by local jewelers as well as retailers at domestic spot market helped gold to end a shade higher but a weak trend overseas restricted the gains.

Globally, gold ended the week lower at USD 1,193.10 an ounce and silver at USD 14.03 an ounce in New York.

In the national capital, gold of 99.9 percent and 99.5 percent purity commenced the week higher and advanced to Rs 31,625 and Rs 31,475 per 10 grams respectively on pick up in buying by local jewelers.

Later, it met with resistance at prevailing higher levels and slipped to Rs 31,400 and Rs 31,250 before ending at Rs 31,420 and Rs 31,270 per 10 grams respectively, showing a modest gain of Rs 70 each.

Sovereign, however, moved in a narrow range in limited deals and pegged at the last level of Rs 24,500 per piece of eight grams.

On the other hand, in volatile movements on alternate bouts of buying or selling, silver ready ended the week lower by Rs 275 to Rs 37,500 per kg and weekly-based delivery shed Rs 170 to Rs 36,995 per kg.

Silver coins, however, maintained steady at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.