Gold rebounds sharply on global cues

Gold prices rebounded sharply from its overnight fall by Rs 475 per 10 grams at the bullion market here today on emergence of fresh buying by stockists and speculators, sparked by an uptrend in the global arena.

Gold met with heavy sell-off in yesterday's trade across the international markets in a knee-jerk reaction to an $1-trillion global emergency fund infusion by European policy makers, triggering a rally in financial markets.

However, investors still consider gold, which drove the prices higher in today's trade, as a safe bet, traders said.

Moving with general trend, silver also firmed up on heavy stockists' demand amid increased off-take from consumer industries.

Standard gold (99.5 purity) recouped by Rs 475 per 10 grams to end at Rs 17,970 from the overnight closing level of Rs 17,495.

Pure gold (99.9 purity) jumped by Rs 480 per 10 grams to finish at Rs 18,060 as against Rs 17,580 yesterday.

Silver ready (.999 fineness) hardened by Rs 235 per kilo to conclude at Rs 29,275 from Rs 29,040 previously.

In London, spot gold was bid at $1,216.76 an ounce in early trade as against $1,201.90 late in New York on Monday.

US gold futures for June delivery rose by $15.80 to $1,216.50 an ounce on the Comex division of the NYMEX.