Gold recovers from 21-month low; jumps by Rs 680

Gold had plunged to 21-month lows in the previous session which triggered the value buying

Gold prices on Tuesday jumped a sharp Rs 680 to Rs 27,050 per 10g in the bullion market here on heavy buying by stockists and retail customers. This was against the backdrop of a sharp rebound on the global front. Recovering from a 31-month low, silver spurted Rs 2,030 to Rs 44,200 a kg.      

Gold had plunged to a 21-month low in the previous session, which triggered value buying, traders said.      

Prices rebounded on the global front as investors covered short positions created in the recent bear market, which also improved the sentiment, they added.      

Gold in New York, which normally sets the price trend on the domestic front, spurted $34 to $1,394 an ounce and silver three per cent to $23 an ounce.      

On the domestic front, gold of 99.9 and 99.5 per cent purity rebounded Rs 680 each to Rs 27,050 and Rs 26,850 per 10g, respectively.

The metal had lost Rs 440 in last two sessions. Sovereign followed and gained Rs 200 to Rs 23,700 a piece of eight gramme.     

Silver ready spurted Rs 2,030 to Rs 44,200 a kg and weekly-based delivery Rs 2,205 to Rs 43,375 a kg. The metal had lost Rs 1,530 yesterday.     

Silver coins jumped Rs 3,000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.