Precious gold bounces on strong retail buying

Gold prices witnessed a sharp rebound after crashing to multi-year lows overnight at the domestic bullion market today on fresh wave of buying from bargain hunters as well as frantic speculative investment demand.

 

The yellow-metal has taken a beating spooked by a massive global commodity meltdown following US central bank decision to roll back its quantitative easing measures earlier than expected.

 

The metal had lost a whopping Rs 2,010 or 7.41% in the last five-straight trading sessions.

 

Silver also recovered on the back of frantic buying from stockists and speculators.

 

Standard gold of 99.5% purity spiked by Rs 645 to finish at Rs 25,775 per 10 gm from Friday's closing level of Rs 25,130.

 

Pure gold of 99.9% purity also spurted by a similar margin of Rs 645 to conclude at Rs 25,910 per 10 gm from Rs 25,265.

 

Silver ready (.999 fineness) shot up by a hefty Rs 1,020 to end at Rs 41,210 per kg compared to Rs 40,190 yesterday.

 

Globally, the shiny metal regained some lost ground on bargain hunting amid short-covering after plunging below the key important $1,200 an ounce level.

 

Gold for August delivery moved up $12.10 to settle at $1,223.70 an ounce on the Comex division of the NYMEX late yesterday.

 

Silver September contract rose 92 cents to close at $19.47 an ounce.