Gold zooms by Rs 350, silver by 1,500 on firm global cues

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Gold prices surged by Rs 350 to Rs 31,700 per 10 grams in the bullion market here on Wednesday, while silver gained Rs 1,500 to Rs 60,500 per kg in line with rally in the precious metals' overseas amid domestic festive demand.

Traders said sentiment bolstered after gold and silver climbed in the global markets on expectations the US will keep stimulus measures to boost the economy after President Barack Obama won re-election for a second term.

Rate in the global markets normally sets price trend on the domestic front.

In Asia, gold gained 0.8 per cent to USD 1,729.70 an ounce -- the highest level since October 23. Silver also moved up by 1.2 per cent to USD 32.36 an ounce. Sustained buying for the festive season further fuelled the upswing, they added.

Back home, gold of 99.9 and 99.5 per cent purity surged by Rs 350 each to Rs 31,700 and Rs 31,500 per 10 grams, after gaining Rs 400 in last two sessions.

Sovereign held steady at Rs 25,450 per piece of eight grams.

Likewise, silver ready spurted by Rs 1,500 to Rs 60,500 per kg while weekly-based delivery by Rs 1,520 to Rs 60,170 per kg. The white metal has gained Rs 1,000 in the previous two session.

Silver coins followed suit and flared by Rs 2,000 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.