Gold prices rose for the second straight day today by gaining Rs 110 to Rs 29,900 per ten grams at the bullion market, taking positive cues from overseas markets and increased buying by jewellers at domestic spot market to meet wedding season demand.
Silver followed suit and recaptured the crucial Rs 41,000-mark per kg by gaining Rs 25 due to increased offtake by industrial units and coin makers.
Bullion traders said a firming global trend after the Bank of Japan unexpectedly held off on expanding stimulus, hurting the dollar, raised demand for the safe haven.
Globally, gold advanced 0.4 per cent to USD 1,250.35 an ounce and silver climbed 0.4 per cent to USD 17.30 an ounce in Singapore.
Besides, persistent buying by jewellers and retailers to meet the ongoing wedding season demand fuelled the uptrend in the precious metals prices, they said.
In the national capital, gold of 99.9 and 99.5 per cent purity advanced by Rs 110 each to Rs 29,900 and Rs 29,750 per ten grams respectively. It had gained Rs 215 yesterday.
Sovereign also traded higher by Rs 100 to Rs 23,300 per piece of eight grams on pick-up in retailers buying.
Following gold, silver ready edged up by Rs 25 to Rs 41,000 per kg but weekly-based delivery fell by Rs 195 to Rs 40,545 per kg on lack of speculators' support.
Silver coins flared up by Rs 3,000 to Rs 67,000 for buying and Rs 68,000 for selling of 100 pieces following upsurge in wedding season demand.