New Delhi: Gold prices extended gains and added Rs 285 to Rs 27,275 per 10 grams in the bullion market here on Tuesday, on sustained buying by stockists and investors, triggered by rising global prices.
However, silver declined by Rs 200 to Rs 53,300 per kg on reduced off take by industrial units at higher levels.
Trading sentiment bolstered in gold after the metal climbed USD 10.28 to USD 1,668.60 in London as concerns that Europe's debt woes may worsen. Also, a slump in the financial markets spurred the demand for the metal as a protection of wealth.
Market analysts said pick-up in festival demand and shifting of funds by investors from weakening equities to rising gold also fulled the uptrend in the metal's prices.
On the domestic front, gold of 99.9 and 99.5 percent purity surged by Rs 285 each to Rs 27,275 and Rs 27,135 per 10 grams, respectively. It had gained Rs 350 on Monday.
Sovereigns added another Rs 100 to Rs 22,000 per piece of eight grams.
On the other hand, silver ready declined by Rs 200 to Rs 53,300 per kg, while silver weekly-based delivery shot up by Rs 645 to Rs 52,645 per kg on sustained buying by speculators.