Gold prices surged by Rs 650 to Rs 31,200 per ten gram on heavy purchases by stockists and retailers for the marriage season and approaching 'Diwali' festival.
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Silver also surged by Rs 1,050 to Rs 35,500 per kg on increased offtake by industrial units and coin makers.
In the international market, gold dropped 0.3 per cent to $1,141.76 an ounce in Singapore today.
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Gold prices rose by Rs 100 to Rs 26,550 per 10 grams at the bullion market on Tuesday.
The precious metals had lost Rs 210 in the previous session.
Conversion into jewellery during redemption would entail 15-20% wastage and making charges, rendering the scheme inefficient
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The minister said he would not reveal the nature of the action by the armed forces but asked people at an event here Friday to trust him on this.
silver coins held steady at Rs 52,000 for buying.
Banks can also allow the depositors to deposit their gold directly with the refiners.
Gold, silver rise on positive global cues.
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Silver also rebounded by Rs 140 to Rs 37,050 per kg.
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