Gold recovers on wedding season demand, global cues

Gold prices rose by Rs 190 to Rs 27,190 per 10 grams at the bullion market on Friday on emergence of buying by jewellers due to wedding season demand amid a firming global trend.

Silver also recovered by Rs 250 to Rs 36,500 per kg on increased offtake by industrial units and coin makers.

Traders said fresh buying by jewellers to meet wedding season demand and a firming trend at global markets mainly led to the recovery in gold prices.

Gold in New York, which normally determines price trend on the domestic front, rose by 0.56 per cent to $1,193.50 an ounce and silver by 0.57 per cent to $15.85 an ounce in yesterday's trade.

Besides, weakness in the rupee that made imports costlier, influenced the precious metal's prices.

The rupee was trading at over three-month low of Rs 63.60 (intra-day) against the dollar at 1500 hours.

In the national capital, gold of 99.9 and 99.5 per cent purity recovered by Rs 190 each to Rs 27,190 and Rs 27,040 per 10 grams, respectively.

It had lost Rs 200 in the previous session.

The Sovereign, however, remained flat at Rs 23,700 per piece of eight grams in restricted buying.

Following gold, silver ready recovered by 250 to Rs 36,500 per kg and weekly-based delivery by Rs 195 to Rs 36,135 per kg. On the other hand, silver coins continued to trade at last level of Rs 55,000 for buying and Rs 56,000 for selling of 100 pieces.