Gold rallied by Rs 100 to Rs 31,250 per 10 grams at the bullion market on Friday on continued buying by jewellers even as the precious metal weakened overseas. However, silver fell by Rs 185 to Rs 46,465 per kg on reduced offtake by industrial units and coin makers.
Bullion traders said persistent buying by jewellers at domestic markets to meet festive season demand, mainly influenced gold prices. Globally, gold fell 0.5 per cent to $1,345.80 an ounce in Singapore as the dollar rebounded and a Federal Reserve policy maker said the US economy is strong enough to warrant an increase in interest rates soon.