Gold bounces on increased demand, global cues

Gold witnessed a smart rebound from a 3-1/2 month low at the domestic bullion market here today due to renewed buying interest from jewellery stockists and retailers in the face of firming overseas trend.
Silver also recovered smartly on the back of heavy speculative offtake.
Standard gold (99.5 purity) climbed by Rs 255 to settle at Rs 25,140 per 10 grams from yesterday's closing level of Rs 24,885.
Pure gold (99.9 purity) also gained by a similar margin to end at Rs 25,290 per 10 grams as compared to Rs 25,035 earlier.
Silver (.999 fineness) regained by Rs 290 per kg to finish at Rs 34,600 from Rs 34,310 earlier.

In global trade, gold staged a modest rebound from its near-six-year low, as the dollar reversed gains versus the euro after the European Central Bank cut its deposit rate less than expected.
Spot gold rose 0.3 percent to USD 1,056.90 in early trade, rebounding from a lowest point since February 2010 touched in earlier trade at USD 1,045.85 an ounce.
Silver rose 0.9 percent to USD 14.10, after reaching its lowest point since August 2009 at USD 13.79 an ounce.