New Delhi, Oct. 18 (PTI): Gold prices spurted by INR 290 to 3-week high of INR 31,000 per 10 grams on the eve of Diwali at the bullion market on Wednesday on increased buying by local jewellers to meet festive demand.
A weak trend overseas however capped the gains.
Silver held steady at INR 41,000 per kg in limited deals from industrial units and coin makers.
Bullion traders said increased buying by local jewellers, driven by Diwali festival demand in domestic spot markets, mainly led to rise in gold prices.
Globally, gold fell by 0.12 per cent to USD 1,283.20 an ounce and silver by 0.06 per cent to USD 16.98 an ounce in Singapore.
In the national capital, gold of 99.9 and 99.5 per cent purity surged by INR 290 each to INR 31,000 and INR 30,850 per 10 grams respectively, a level last seen on September 27. It had lost INR 140 on Tuesday.
Sovereign, however, remained steady at INR 24,700 per piece of eight grams on little doing.
On the other hand, silver ready held steady at INR 41,000 per kg, while weekly-based delivery fell by INR 130 to INR 39,860 per kg. Silver coins continued to be traded at previous level of INR 74,000 for buying and Rs 75,000 for selling of 100 pieces.
