Gold bounces back, up Rs 70 on firm global cues

Gold rose by Rs 70 to Rs 21,170 per 10 grams on the bullion market today, largely on stockists buying for the ongoing marriage season supported by firm global trends.

Silver followed suit and shot up by Rs 750 to Rs 50,250 per kg.

Trading sentiments for the yellow metal turned bullish after it rose in global markets as unrest in Libya spurred demand for the metal as an alternative investment.

Gold in global markets, which normally sets a price trend on the domestic front, rose by $7.50 to $1,409.60 and silver by $1.27 to $33.38 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity rose by Rs 70 each to Rs 21,170 and Rs 21,050 per 10 grams respectively. The metal had lost Rs 140 in the previous trading session. 

Silver ready staged a strong come back and recorded hefty gains of Rs 750 to Rs 50,250 per kg and silver weekly-based delivery by Rs 340 to Rs 49,670 per kg.

Silver coins rose by Rs 400 to Rs 54,500 for buying and Rs 54,600 for selling of 100 pieces.    

However, sovereign continued to be asked around previous level of Rs 17,200 per piece of eight grams in restricted buying.