Continuing its upward march for the third day in a row, gold prices advanced by Rs 120 to Rs 31,265 per 10 gm in the national capital on Wednesday on increased buying by stockists and ornament makers for the ensuing wedding season amid a firming global trend.
Silver also strengthened by Rs 560 to Rs 58,300 per kg on increased offtake by industrial units and coin makers.
Sentiments remained bullish as gold rose to a two-week high in overseas markets, gaining with other commodities as the dollar weakened, after the US Congress passed the 'fiscal cliff' deal, easing concern that a recovery in the world's biggest economy may be derailed.
Gold in global markets, which normally sets price trend on the domestic front, was up by 0.7 per cent to $1,684.75 an ounce, the highest since December 18 and silver by 1.1 per cent to $30.66 an ounce in Singapore.
In addition, increased buying by stockists and retailers for the coming wedding season further supported the upswing.
Meanwhile, the government slashed the import tariff value of gold and silver marginally to $539 per 10 gm and $979 per kg, respectively.
On the domestic front, gold of 99.9 and 99.5 per cent purity advanced by Rs 120 each to Rs 31,265 and Rs 31,065 per 10 gm, respectively.
The metal had gained Rs 220 in last trading session. Sovereign held steady at Rs 25,450 per piece of eight gram.
In a similar fashion, silver ready strengthened by Rs 560 to Rs 58,300 per kg and weekly based delivery by Rs 600 to Rs 58,400 per kg.
Silver coins also spurted by Rs 1,000 to Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.