In line with a better overseas trend gold prices today rose by Rs 80 to close at Rs 12,430 per ten gram in the bullion market here on heavy buying by stockists amid concerns of a further decline in dollar over worsening US economy.
Standard gold and ornaments gained Rs 80 each at Rs 12,430 and Rs 12,290 per ten gram respectively. Sovereign, however, remained unchanged at Rs 10,400 per piece of eight gram.
Trading sentiment turned bullish following reports of the precious metal advancing in Asia as investor demand for bullion rose. In Singapore bullion gained 10.86 dollar to reach 767.31 dollar an ounce on anticipating a further fall in dollar.
A similar firmness was noticed in silver on the back of firm overseas trend and buying by industrial units. Silver ready rose by Rs 300 at Rs 16,650 per kg and weekly-based delivery by Rs 310 at Rs 16,750 per kg.
Silver coins rose by Rs 100 at Rs 26,400 for buying and Rs 26,500 for selling of 100 pieces.
