Gold prices rose by Rs 150 to Rs 32,870 per ten grams in the bullion market on Saturday on fresh buying by local jewelers.

According to the India Sarafa Association, silver also increased by Rs 295 to Rs 38,520 per kg on rising offtake by industrial units and coin makers.

Sarafa businessmen said besides the rise in local jewelers' buying, the fall in the exchange rate of rupee against dollar has increased the prices of precious metals. India is a big importer of gold.

The rupee fell 22 paise to close at 70.08 against the dollar in early trade due to fresh dollar demand from crude oil and the demand for importers. Gold in New York rose to $ 1,278.50 an ounce, while silver loss showed $ 14.99 an ounce.

In Delhi, on Thursday, 99.9 percent and 99.5 percent purity rose gold by Rs 150 – 150 to Rs 32,870 and Rs 32,700 per 10 gram respectively.

However, it remained stable at Rs 26,400 per piece of 8 grams. On the other hand, silver ready recovered by Rs 295 to Rs 38,520 per kg and weekly-based delivery by Rs 376 to Rs 37,381 per kg. On the other hand, silver coins, buying rose by Rs 80,000 and selling remained constant at Rs 81,000 per 100 units per 100 kg.