Gold gains Rs 320; silver drops Rs 125

Gold prices rose by Rs 320 to Rs 53,449 per 10 grams in the national capital on Wednesday in line with firm global trend and depreciation in the rupee, according to HDFC Securities. In the previous trade, the precious metal had closed at Rs 53,129 per 10 grams.

Silver, however, dropped Rs 125 to Rs 62,682 per kg.

The rupee depreciated 66 paise to 81.57 against the US dollar in early trade on Wednesday, tracking the strength of the American currency in the overseas market and a muted trend in domestic equities.

"Better domestic physical demand, a weaker rupee and higher international prices supported domestic gold prices," said Dilip Parmar, Research Analyst at HDFC Securities.

In the international market, gold was trading higher at USD 1,777.56 per ounce while silver was down at USD 21.68 per ounce.

"Gold prices steadied near a three-month peak as signs of cooling US inflation boosted bets for smaller rate hikes, while reports around Russian missiles killing two people in Poland led to some demand for safe-haven assets," said Navneet Damani, Senior VP - of Commodity Research at Motilal Oswal Financial Services.

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