Precious metals rebound on global cues, festive demand

Both the precious metals, silver and gold rebounded in the national capital today on emergence of brisk buying by stockists and jewellers, supported by a similar trend in the overseas market.

The gold, which had lost Rs 300 in the previous session, recovered by Rs 140 to Rs 19,740 per ten grams and silver shot up by Rs 1000 to Rs 35,300 per kg to regain its all-time high level seen on October 7.

Trading sentiment turned bullish as gold in overseas markets, which normally sets the price trend on the domestic front, here rose on a weakening dollar boosting the precious metal's appeal as an alternative investment.

The metal rose by $13.40 to $1347.00 an ounce.    

Rising demand in the domestic markets on beginning of "Navratra" an auspicious week in Hindu mythology for purchase of gold, further supported the bullion prices, traders said. 

The gold of 99.9 and 99.5 per cent purity recovered by Rs 140 each to Rs 19,740 and Rs 19,640 per 10 grams, respectively. However, sovereign remained steady at Rs 15,500 per piece of eight grams in restricted deals.

In line with a general firm trend, silver ready staged a strong came back and shot up by Rs 1000 to a record high of Rs 35,300 per kg. Silver weekly-based delivery also jumped by Rs 935 to Rs 34,695 per kg.

Silver coins followed suits and rose by Rs 300 to Rs 35,700 for buying and Rs 35,800 for selling of 100 pieces on account of festive season.