Gold prices rebound on strong buying amid global rally

Gold staged a smart recovery and closed above the key Rs 26,000 per 10 grams level at the domestic market on emergence of brisk buying by stockists and jewellery traders as well as speculative investment off-take.
Extreme bullish overseas sentiment following a sharp recovery in precious metals worldwide trade on the back of fading commodity volatility gave the domestic players a shot in the arm, triggering frantic buying activity, a bullion trader commented.
A collapse in crude prices after Opec's refusal to cut production to counter a supply glut caused a broader rout in industrial and precious metals.
Silver also shot-up further on massive speculative demand.

Standard gold (99.5 purity) jumped by Rs 370 to finish at Rs 26,335 per 10 grams from Monday's closing Rs 25,965.
Pure gold (99.9 purity) also rose by a similar margin to close at Rs 26,485 per 10 grams against Rs 26,115.

Silver (.999 fineness) climbed by Rs 850 to conclude at Rs 36,965 per kg compared with Rs 36,115 yesterday.
On the global front, the shiny metal reclaimed the psychologically significant USD 1,200 an ounce following heavy short-covering rally fueled by a downgrade of Japan's sovereign debt rating.
Gold February contract soared USD 42.60, or 3.6 per cent to settle at USD 1,218.10 an ounce on the Comex division of the NYMEX late yesterday and silver surged USD 1.14, or 7.3 per cent to USD 16.69 an ounce.