Gold rebounds on firming global cues, fresh buying

Snapping a three-day losing streak, gold prices rose by Rs 70 to Rs 17,800 per ten gram in the bullion market today as a firming global trend spurred buying by stockists and jewellers at existing lower levels.

Buying activity in gold picked up after prices in overseas markets recorded a handsome recovery as traders felt the 5.6 per cent fall was excessive.

Gold rush from jewellery fabricators to meet the current marriage season further supported the uptrend.

The fall in prices was mirrored by the other precious metal silver as well. Less buying by industrial units in silver at such higher levels pulled down white metal's prices while the prices of weekly-based delivery rose on speculative support.

Silver ready remained under selling pressure and fell by Rs 300 to Rs 28,500 per kg while weekly-based delivery surged by Rs 555 to Rs 28,900 per kg on speculative buying.

Silver coins continued to be asked around previous levels of Rs 34,000 for buying and Rs 34,100 for selling of 100 pieces.

Standard gold and ornaments recovered by Rs 70 each to Rs 17,800 and Rs 17,650 per ten gram respectively while sovereign held steady at Rs 14,100 per piece of eight gram.