Gold prices recover by Rs 305 on global cues

Gold prices rebounded by Rs 305 to Rs 31,235 per ten grams at the bullion market here today on firm overseas cues and increased buying by local jewellers.

Silver also recovered by Rs 240 per kg on increased offtake by industrial units.

Standard gold (99.5 per cent purity) hardened by Rs 305 to finish at Rs 31,235 per 10 grams from previous closing price of Rs 30,930.

Pure gold (99.9 per cent purity) also rose by a similar margin to end at Rs 31,385 per 10 grams compared with Rs 31,080, yesterday.

Silver (.999 fineness) spurted by Rs 240 to conclude at Rs 39,850 per kg against its Monday's level of Rs 39,610.

Globally, gold edged up as a deepening political crisis in Italy provoked a second day of heavy selling in European financial markets, though a buoyant dollar kept the precious metals gains in check.

Spot gold was trading 0.4 per cent higher at USD 1,303.20 per ounce at early trade.

Spot silver was flat at USD 16.46 an ounce.