Gold, silver prices bounce on jewellers' buying

Bullion traders attributed the recovery to emergence of buying by jewellers as well as retailers.

Snapping the three-day losing run, gold prices recovered by Rs 40 to Rs 25,640 per 10 grams at the bullion market on Thursday, largely because of fresh purchases by jewellers and retailers, even as it retreated overseas after the US Fed lifted interest rates.

Silver followed suit and rose by Rs 350 to Rs 33,850 per kg.

Bullion traders attributed the recovery to emergence of buying by jewellers as well as retailers.

They said a fall in gold prices in the global market after the US Fed announced a 0.25 per cent hike in interest rates, which boosted the dollar and dented the appeal of the precious metals, capped the gains.

Globally, gold fell 0.4 per cent to $1,068.50 an ounce and silver shed 0.92 per cent at $14.04 an ounce in Singapore.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity edged higher by Rs 40 each to Rs 25,640 and Rs 25,490 per 10 grams, respectively.

It had lost Rs 400 in last three days.

The sovereign, however, remained steady at Rs 22,200 per piece of eight grams in limited deals.

Silver ready rose by Rs 350 to Rs 33,850 per kg and weekly-based delivery regained Rs 34,000 by rising Rs 425 per kg.

On the other hand, silver coins continued to be traded at previous level of Rs 47,000 for buying and Rs 48,000 for selling of 100 pieces.

Image: A customer looks at gold bangles inside a jewellery showroom in the southern Indian city of Hyderabad. Photograph: Krishnendu Halder/Reuters