New Delhi: Gold extended gains for the third straight day by adding Rs 40 to Rs 29,220 per 10 grams on Tuesday, on sustained buying by stockists for the ongoing marriage season amid firming global trend.

However, silver lacked necessary follow up support at existing higher levels and declined by Rs Rs 150 to Rs 55,750 per kg.

Gold remained in demand among jewellers and stockists to meet the ongoing heavy marriage season demand and maintained the uptrend in the third straight session.

Buying activity also picked up as gold rose the most in two weeks in global markets as a weaker dollar accelerated demand for the yellow metal as an alternative investment.

Gold in global markets, which normally sets the price trend on the domestic front, shot up by USD 29.60 to USD 1,709.90 an ounce in New York on Monday night.

On the domestic front, gold of 99.9 and 99.5 per cent purity added another Rs 40 each to Rs 29,220 and Rs 29,080 per 10 grams, respectively. The metal had gained Rs 290 in last two trading sessions. Sovereigns remained flat at Rs 23,300 per piece of eight grams.

On the other hand, silver ready fell by Rs 150 to Rs 55,750 per kg, while weekly-based delivery inched up by Rs 45 to Rs 55,045 per kg on speculative support.

Silver coins continued to be asked around previous level of Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.

(Agencies)