Gold rebounds as dollar slides

Gold prices rose by Rs 150 to Rs 17,260 per ten gram in the bullion market today on emergence of fresh buying as dollar fell, spurring demand for the precious metal.

Marketmen said buying by stockists and jewellery makers, influenced by a firming global trend, also supported the uptrend in prices.

Gold in Asia rose 1.1 per cent at $1127.65 an ounce.

The precious metal also gained from dollar weakness as it typically moves inversely to the US currency.

The US Dollar Index, a measure against six major currencies, fell as much as 0.4 per cent as Abu Dhabi pledged $10 billion loan to bail out Dubai.

Standard gold and ornaments recovered by Rs 150 each to Rs 17,260 and Rs 17,110 per ten gram respectively.

Sovereign followed suit and gained Rs 100 at Rs 14,000 per piece of eight gram.

Silver ready rose by Rs 250 to Rs 27,700 per kg and weekly-based delivery by Rs 450 to Rs 27,500 per kg.

In line with a general firming trend, silver coins traded higher by Rs 200 to Rs 33,400 for buying and Rs 33,500 for selling of 100 pieces.