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Gold recovers on jewellers' buying; silver extends weakness

Wedding season demand spurs recovery in yellow metal; however, weak trend overseas caps the rise

Press Trust of India  |  New Delhi 

Photo: Shutterstock
Photo: Shutterstock

In otherwise restricted activity, prices recovered by Rs 50 to Rs 29,450 per 10 grams at the market on Tuesday, on scattered buying by jewellers and retailers, even as the yellow metal weakened overseas.

However, remained under selling pressure and dipped below the Rs 41,000-mark, tumbling Rs 865 to Rs 40,735 per kg due to reduced offtake by industrial units and coin makers.

Traders attributed a mild recovery in prices to some buying by jewellers and retailers to meet ongoing wedding season demand but weak trend overseas capped the rise.

traders said the volume of business has dropped sharply by 75 per cent in view of prevailing cash crunch in the market following the government banning 500- and 1,000-rupee notes on November 8 to flush out

Globally, fell 0.54 per cent to $1,187.30 an ounce and by 0.15 per cent to $16.54 an ounce in Singapore.

In the national capital, gold of 99.9 and 99.5 per cent purity rose by Rs 50 each to Rs 29,450 and Rs 29,300 per ten grams, respectively.

The market reopened yesterday after 16 days, with gold prices dropping by Rs 1,750 per 10 grams. Market was closed after the Department carried out surveys following reports of alleged profiteering and efforts at tax evasion in the wake of government's move.

Sovereign, however, held steady at Rs 24,400 per piece of eight gram.

On the other hand, ready dropped further by Rs 865 to Rs 40,735 per kg and weekly-based delivery by Rs 940 to Rs 40,235 per kg.

Silver coins, however, held steady at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.

First Published: Tue, November 29 2016. 15:22 IST