Gold rallies for 4th day, up Rs 100 on sustained buying

Rising for the fourth straight session, gold prices on Wednesday shot up by another Rs 100 to Rs 26,800 per 10 grams in the national capital on sustained buying by stockists amid a firming global trend.

However, silver met with some resistance at prevailing high levels and declined by Rs 50 to Rs 41,250 per kg, after gaining Rs 2,290 in the previous three sessions.

Traders said sustained buying by stockists and investors shifting their funds from melting stocks to bullion mainly kept gold prices firm for the fourth-day.

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A firming global trend as investors weighed prospects for increased physical demand against a slowing stimulus in the US, further influenced the sentiment.

Gold in London, which normally sets the price trend on the domestic front here, rose by 0.3 per cent to $1,247.60 an ounce.

On the the domestic front, gold of 99.9 and 99.5 per cent purity added Rs 100 each to Rs 26,800 and Rs 26,700 per 10 grams, respectively. It had gained Rs 1050 in last three days.

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Sovereigns held steady at Rs 24,000 per piece of eight grams in restricted buying.

On the other hand, silver ready met with resistance and shed Rs 50 to Rs 41,250 per kg while weekly-based delivery rose by Rs 60 to Rs 40,935 per kg on scattered speculators buying.

Silver coins continued to be asked around previous levels of Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.