Gold gains Rs 230 on low level buying, global cues

Snapping its two-day falling streak, gold prices rebounded by Rs 230 to Rs 30,930 per ten grams in the national capital today on emergence of buying at existing lower levels for the ongoing marriage season amid a firming global trend.

Silver also jumped by Rs 770 to Rs 44,400 per kg after sharp fall of Rs 1,430 yesterday on increased offtake by industrial units and coin makers.

Marketmen said emergence of buying by stockists and retailers at lower levels for the ongoing marriage season mainly led the recovery in gold and silver prices.

They said a firm global trend after signs of low US inflation indicated more room for Federal Reserve to maintain their $85 billion of monthly bond purchases further boosted the sentiment.

Gold in New York, which normally sets price trend on the domestic front, climbed by 0.8% to $1,234.60 an ounce and silver by 0.8% to $19.60 an ounce.

On the domestic front, gold of 99.9 and 99.5% purity shot up by Rs 230 each to Rs 30,930 and Rs 30,730 per ten grams, respectively. It had lost Rs 450 in last two trading sessions.

Sovereign followed suit and rose by Rs 100 to Rs 25,300 per piece of eight gram.

Silver ready jumped by Rs 770 to Rs 44,400 per kg and weekly-based delivery by Rs 645 to Rs 44,775 per kg.

Silver coins also spurted by Rs 2,000 to Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces.