Gold, silver bounce on global cues, jewellers buying

New Delhi: Snapping a three-day losing streak, gold prices firmed up by Rs 215 to Rs 28,850 per ten grams at the bullion market today, tracking a firm trend overseas and fresh buying by jewellers to meet the wedding season demand.

Silver followed suit and reclaimed Rs 37,000-mark by rising Rs 250 to close at Rs 37,100 per kg on increased offtake by industrial units and coin makers.

Traders said a firming global trend as investors await the release of minutes from the last Federal Open Market Committee meeting for further clues on the outlook for US borrowing costs, mainly led to the recovery in the precious metal prices.

Globally, gold advanced one per cent to USD 1,212.21 an ounce in Singapore, while at London it was up 0.42 per cent at USD 1,205.40 an ounce in early trade.

Besides, buying by jewellers as well as retailers to meet the wedding season demand and a depreciating rupee against the dollar that made imports costlier, supported the upside, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity recovered by Rs 215 each to Rs 28,850 and Rs 28,700 per ten grams respectively.

The precious metal had lost Rs 1,015 in the last three days.

Sovereign however continued to be traded at previous level of Rs 22,900 per piece of eight grams.

Following gold, silver ready rebounded by Rs 250 to Rs 37,100 per kg and weekly-based delivery by Rs 420 to Rs 37,295 per kg.

Silver coins too spurted by Rs 1,000 to Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.