Gold rebounds from 20-month low on fresh buying, global cues

Snapping a four-day losing streak, gold prices rebounded today by gaining Rs 250 to Rs 26,600 per 10 grams in the national capital on fresh buying by stockists and retailers amid recovery in overseas markets.

However, silver remained weak for the fifth day by losing Rs 300 to Rs 45,400 per kg on lack of buying support from industrial units and coin makers.

Sentiment in gold improved as stockists and retailers indulged in fresh buying at existing lower levels.

A recovery move in overseas markets, as the biggest slump in three decades spurred demand for the precious metal from investors and consumers also supported the rebound in gold.

Gold in overseas markets, which normally set price trend on the domestic front, rose 0.4 per cent to $1,381.55 an ounce in Singapore. Prices touched $1,321.95 on April 16, the lowest since January 2011.

On the domestic front, gold of 99.9 and 99.5 per cent purity recovered by Rs 250 each to Rs 26,600 and Rs 26,400 per ten grams after losing Rs 3,250 in last four sessions. Sovereign remained steady at Rs 24,000 per piece of eight gram in limited deals.

On the other hand, silver ready continued its slide for the fifth day and lost another Rs 300 to Rs 45,400 per kg and weekly-based delivery by Rs 60 to Rs 43,400 per kg. The white metal had lost Rs 6,900 in the previous four sessions.

Silver coins held steady at Rs 74,000 for buying and Rs 75,000 for selling in restricted buying.