Gold price rebounded by Rs 190 to Rs 31,000 per ten grams in Delhi today on pick up in festive season demand. On the other hand, silver dropped further by Rs 620 to Rs 49,050 per kg on lack of buying interest.
Traders said pick up in festive season and wedding demand amid a weak Indian rupee to the US dollar mainly led the recovery in gold prices.
Import of the dollar-priced gold became costlier as rupee fell against dollar. The local currency fell 25 paise to 62.22 per dollar at the outset in the forex market.
They said silver fell further on stocking selling against reduced offtake by industrial units and coin makers.
Gold of 99.9 and 99.5 per cent purity shot up by Rs 190 each to Rs 31,000 and Rs 30,800 per ten grams, respectively. It had lost Rs 120 yesterday. Sovereign added Rs 100 to Rs 25,200 per piece of eight gram.
However, silver ready dropped by Rs 620 to Rs 49,050 per kg and weekly-based delivery by Rs 650 to Rs 48,900 per kg after losing Rs 280 in the previous session.
Silver coins remained steady at Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces.