Gold bounces back on festive demand, global cues

Gold prices bounced back smartly at the domestic bullion market here today on good local demand amid higher offtake by stockists and jewellers due to forthcoming festive season and firm global cues.
Silver also spurted owing to brisk buying, lifted by 'Ganesh Chathurthi' a ten-day festival celebrated across Maharashtra from tomorrow.
Standard gold (99.5 purity) surged by Rs 205 to close at Rs 27,940 per 10 grams from Wednesday's level of Rs 27,735.
Pure gold (99.9 purity) also climbed by Rs 195 to finish at Rs 28,090 per 10 grams from Rs 27,895.
Silver (.999 fineness) zoomed by Rs 700 to conclude at Rs 43,655 per kg as compared to Rs 42,955 previously.

On the global front, gold rose for the third straight session following softer dollar and equity markets amid renewed tensions between Ukraine and Russia, but the metal's rebound could be short-lived on prospects of an interest rate hike in the US.
Spot gold was bid higher at USD 1,291.00 an ounce in early European trade, while spot silver also bid up at USD 19.74 an ounce.