Gold, silver Recover On Fresh Buying And Festive Demand

Gold prices rebounded by Rs 105 to Rs 30,535 per 10 gram at the bullion market today on renewed buying by local jewellers and retailers despite a sluggish global trend. A depreciating rupee which has breached the 72 level against the US dollar also lifted the prices as imports have turned costlier, traders said.

Increased buying by local jewellers to meet rising festive demand for ornaments drove gold prices, but a weak overseas trend capped the gains. Silver prices too recouped by Rs 365 to Rs 36,845 per kg, supported by fresh demand from industrial units and coin makers.

Standard gold (99.5 per cent purity) rose by Rs 105 to end at Rs 30,535 per 10 gram from Friday's closing level of Rs 30,430. Pure gold (99.9 per cent purity) also moved down by a similar margin to close at Rs 30,685 per 10 gram as against Rs 30,580, previously.

Silver (.999 fineness) climbed Rs 365 per kg to conclude at Rs 36,845 as compared to Rs 36,480 last Friday. Globally, gold prices edged down for a second session as trade tensions between China and the United States helped boost the dollar and weaken the yuan.

Spot gold was down at USD 1,193.93 in early European trade slipping towards the 19-month low of USD 1,159.96 touched last month. The US gold futures were down at USD1,199. In other precious metals, spot silver was up at USD 14.19.