Festive demand lifts gold; silver holds steady

New Delhi: Gold prices staged a modest recovery by Rs 500 to Rs 1,42,500 per 10 grams in the national capital on Monday, as festive purchases by jewellers and retailers ahead of Diwali helped the precious metal regain some ground after a sharp sell-off in October.

The yellow metal of 99.9 per cent purity closed at Rs 1.42 lakh per 10 grams on Saturday.

Silver, however, remained steady at Rs 1.86 lakh per kilogram, inclusive of all taxes, according to local traders.

Traders said jewellers and retailers increased purchases ahead of the festival, providing some support to domestic precious metal prices. The rupee’s weakness against the US dollar also increased the cost of dollar-denominated bullion.