Gold up by Rs 70 on festive demand; silver sheds Rs 640

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Amid strong festive demand and afirm trend overseas, gold prices rose for the fourth day in a row in the bullion market here today by adding Rs 70 to Rs 31,770 per 10 grams.

However, silver lacked necessary follow up support at prevailing higher levels and snapped a three-day rally, losing Rs 640 to 59,860 per kg.

Sentiment in gold remained firm on buying by stockists and jewellers to meet the demand for coming festival of Deepavali and ongoing wedding season, traders said.

A firming global trend where investors bought the yellow metal following the recent fall in its prices also influenced the trading sentiment, they said.

In Singapore, gold advanced by 0.2 per cent to USD 1,720.50 an ounce.

Back home, gold of 99.9 and 99.5 per cent purity rose by Rs 70 each to Rs 31,770 and Rs 31,570 per 10 grams, respectively. The metal has gained Rs 750 in the last three sessions.

Sovereigns also rose by Rs 50 to Rs 25,500 per piece of eight grams.

Silver ready fell by Rs 640 to Rs 59,860 per kg and weekly-based delivery by Rs 540 to Rs 59,630 per kg. The white metal had gained Rs 2,500 in last three days.

Silver coins, which are normally used for pooja and gifting purposes during Deepavali, held steady at Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces in limited deals.

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