Gold bounces back on sesonal demand, global cues

Snapping two days of losses, gold prices rose by Rs 450 to Rs 31,250 per ten gram in the national capital today on emergence of buying by stockists at existing lower levels for the ongoing marriage season amid a strong global trend.
Silver, however, fell for the third straight session by losing Rs 200 to Rs 43,800 per kg on lack of buying support from coin makers and industrial units.
Traders said emergence of buying by stockists at existing lower levels for the ongoing wedding season amid a strong global trend mainly helped gold prices to bounce back.
Gold in New York, which normally sets price trend on the domestic front, rose by USD 19, or 1.55 per cent, to USD 1,243.30 an ounce last night.

On the domestic front, gold of 99.9 and 99.5 per cent purity bounced back by Rs 450 each to Rs 31,250 and Rs 31,050 per ten gram, respectively, after losing Rs 725 in last two sessions. Sovereign also rose by Rs 100 to Rs 25,200 per piece of eight gram.
On the other hand, silver fell further by Rs 200 to Rs 43,800 per kg while weekly-based delivery spurted by Rs 1,370 to Rs 44,300 per kg on speculative buying. The metal had lost Rs 1,075 in last two days.
Silver coins dropped by Rs 1,000 to Rs 82,000 for buying and Rs 83,000 for selling of 100 pieces.