Trading sentiments turned bullish as gold climbed to a three-week high in London as declining dollar and increasing oil prices boosted the metal's appeal as an alternative investment and hedge against rising consumer prices.
Gold prices in London rose by $13.80 dollar to $951.50 an ounce, the highest since June 26 while silver prices increased by 1.9 per cent to $13.68 an ounce, the highest since July 2.
The market also witnessed heavy buying of gold by jewellers and coin manufacturers ahead of the marriage season. A fall in arrivals further helped the precious metal to gain ground, marketmen said.
They said the country imported nearly 12 metric tonnes of gold in June compared to 18 metric tonnes in the previous before, they added.
Standard gold and ornaments, which remained in negative zone in the last two trading sessions, bounced back to record a gain of Rs 100 each to Rs 15,090 and Rs 14,940 per ten gram respectively. However, sovereign held unchanged at Rs 12,450 per piece of eight gram.
Silver ready remained in demand and rose further by Rs 150 to Rs 22,350 per kg while weekly-based delivery rose by Rs 205 to Rs 22,255 per kg respectively. Silver coins also gained Rs 100 to Rs 29,400 for buying and Rs 29,500 for selling of 100 pieces.
