Gold rebounds after 3-day fall on renewed demand, global cues

Snapping a three-day fall, gold regained some lost ground at the bullion market here today on emergence of fresh buying from jewellery stockists and traders amid a firming trend in overseas.

Silver also recouped smartly and closed above the key important Rs 36,000-level following heavy speculative offtake. Besides strong seasonal and festive demand, revival of buying from retailers on attractive lower levels mainly led a recovery in gold prices, a bullion trader commented.

The yellow-metal had slipped to a four-month low yesterday. Standard gold (99.5 purity) jumped by Rs 235 to finish at Rs 25,835 per 10 grams from overnight closing level of Rs 25,600.

Pure gold (99.9 purity) also climbed by a similar margin to end at Rs 25,985 per 10 grams against Rs 25,750.

Silver (.999 fineness) rose by Rs 545 to settle at Rs 36,475 per kg compared to Rs 35,930 yesterday.

In worldwide trade, the shiny-metal retreated from an earlier two-week high and was trading marginally lower after the dollar recovered some ground after posting its biggest daily fall in 18 months following a more cautious than expected interest rate statement from the Federal Reserve.

Spot gold was bid lower at USD 1162.80 an ounce in early European trade, while silver softened to $15.85 an ounce.