Gold recovers on Christmas demand, global cues

Snapping a two-day losing streak, gold prices recovered Rs 125 to Rs 30,175 per 10g in the national capital on Wednesday, on Christmas demand coupled with a firm global trend. Silver followed and gained Rs 140 to Rs 43,690 a kg on increased offtake by industrial units.

Traders said besides Christmas demand, firm global trend on speculation that this month's price drop could spur more physical buying mainly led to a recovery in precious metals. Gold in New York, which normally sets price trend on the domestic front, rose 0.5 per cent to $1,203.30 an ounce and silver 0.4 per cent to $19.48 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity recovered Rs 125 each to Rs 30,175 and Rs 29,975 per 10g, respectively. It had lost Rs 350 in last two trade. Sovereign remained steady at Rs 25,100 per piece of eight gramme. In line with a general firm trend, silver ready rebounded Rs 140 to Rs 43,690 a kg and weekly-based delivery Rs 250 to Rs 43,990 a kg.