Gold prices regain sheen on global cues, silver tops Rs 40,000 level

Globally, gold rose by 0.72% to $1,322 an ounce and silver by 0.58% to $17.20 an ounce in New York yesterday

Reversing yesterday's slide, gold prices bounced back by Rs 135 to trade at over one-month high of Rs 30,500 per 10 grams at the bullion market on Friday, largely driven by a firm trend overseas amid a pick-up in buying by local jewellers.

Silver followed suit and recaptured the Rs 40,000-mark due to increased offtake by industrial units and coin makers.

Bullion traders attributed the recovery in gold prices to a firm trend overseas as the weakness in dollar which hit a four-month low boosted demand for the precious metal as a safe-haven.

Globally, gold rose by 0.72 per cent to $1,322 an ounce and silver by 0.58 per cent to $17.20 an ounce in New York yesterday.

In addition, increased buying by local jewellers at domestic spot market fuelled the uptrend, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity rebounded by Rs 135 each to Rs 30,500 and Rs 30,350 per 10 grams, respectively, a level last seen on December 2. The precious metal had lost Rs 85 yesterday.

Sovereign, however, remained flat at Rs 24,700 per piece of eight grams.

Following gold, silver ready climbed by Rs 360 to Rs 40,000 and weekly-based delivery by Rs 220 to Rs 39,200 per kg.

Silver coins, however, remained unchanged at Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.