Gold price extends gains on Diwali eve; silver slides

New Delhi: Rising for the second straight day, gold prices edged up by Rs 5 to reach Rs 26,235 per 10 grams on the eve of Diwali at the bullion market Tuesday on increased buying by jewellers to meet festive and wedding season demand amid a mixed global trend.

Silver, however, met with resistance and dropped by Rs 535 to trade below Rs 35,000-mark at Rs 34,875 per kg.

Traders said sustained buying by jewellers to meet festive season demand and a better trend overseas mainly kept gold prices higher.

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Globally, gold ended 0.23 percent higher at USD 1,091.90 an ounce in New York yesterday, while the precious metal was trading 0.03 percent down at USD 1,091.60 an ounce in Singapore.

In the national capital, gold of 99.9 and 99.5 percent purity inched up by Rs 5 each to Rs 26,235 and Rs 26,085 per 10 grams respectively. It had gained Rs 120 yesterday.

Sovereign, however, remained steady at Rs 22,300 per piece of eight grams.

On the other hand, silver ready plunged by Rs 535 to Rs 34,875 per kg and weekly-based delivery fell by Rs 620 to Rs 34,520 per kg.

Silver coins also plummeted by Rs 1,000 to Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.