Gold today made the most of a general weakness in the dollar by bouncing Rs 150 to Rs 29,850 per 10 grams, riding on a strong overseas trend and fresh buying by local jewellers. By doing so, it snapped its two-day falling spell. The US dollar moved down after President Donald Trump said he is willing to face the prospects of a government shutdown to secure funding for a wall along the US-Mexico border. Any weakness in the dollar means greater appeal of the bullion, which offers better returns to investors in times of volatility. Silver also advanced by Rs 200 to Rs 40,200 per kg backed by increased offtake by industrial units. Traders said that apart from an upward trajectory overseas, fresh buying by local jewellers to meet festive season demand at the domestic spot market led to the recovery in prices of precious metals.
Globally, gold rose 0.46 per cent to USD 1,290.30 an ounce and silver by 0.59 per cent to USD 17.08 in New York yesterday. In the national capital, gold of 99.9 per cent and 99.5 per cent purity climbed Rs 150 each to Rs 29,850 and Rs 29,700 per 10 grams, respectively. The yellow metal had lost Rs 250 in the previous two sessions. Sovereign, however, remained flat at Rs 24,500 per piece of eight grams.
Tracking gold, silver ready rose further by Rs 200 to Rs 40,200 per kg and weekly-based delivery by Rs 25 to Rs 39,045. Silver coins, however, continued to trade at previous level of Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.