Mumbai :Gold staged a spectacular comeback to reclaim the psychologically significant Rs 25,000 mark – its highest level in two-weeks at the domestic bullion hub following frantic stockists buying driven by strong global sentiment.
After weeks of tremendous selling pressure, the yellow-metal broke its descending trend due to attractive low level buying in the face of a firming trend in overseas.
Jewellery stockists and retail buyers seized the opportunity to restock gold in anticipation that the demand will improve considerably in coming days ahead of peak festive season as well as wedding-related demand, a bullion dealer said.
Standard gold (99.5 purity) shot-up by Rs 425 to end at Rs 25,250 per 10 grams from Monday’s closing level of Rs 24,825.
Pure gold (99.9 purity) also jumped by a similar margin to conclude at Rs 25,400 per 10 grams as against Rs 24,975 previously.
Elsewhere, silver continued its rallying momentum on the back of heavy speculative demand and also good industrial buying support.
Silver (.999 fineness) zoomed by Rs 900 to finish at Rs 35,740 per kg compared to Rs 34,840 yesterday.
In global trade, the shiny-metal rallied to trade above the key USD 1,100 benchmark on heavy short-covering bounce amid uncertainties and risks about the global economy after China unleashed currency war to overcome to sliding economic activities.
Spot gold was substantially up at USD 1,108.00 an ounce in early European trade, while silver quoted higher at USD 15.25 an ounce.