Gold, silver rebound on mild demand

Gold rebounded by Rs 60 per 10 grams at the bullion market here today following mild demand from stockists and retailers despite bearish global cues.

Silver too recovered marginally by Rs 80 per kg owing to good offtake from industrial units.

Traders attributed the recovery in gold prices to pick-up in buying by local jewellers to meet the ongoing 'Navratras' demand at the domestic spot market, even as a bearish trend overseas capped the rise.

Standard gold (99.5 purity) rose by Rs 60 to close at Rs 30,250 per 10 grams from Monday's level of Rs 30,190.

Pure gold (99.9 purity) also moved up by the same amount to finish at Rs 30,400 per 10 grams against Rs 30,340 yesterday.

Silver (.999 fineness) climbed by Rs 80 per kg to conclude at Rs 38,020 compared to Rs 37,940 earlier.

Globally, gold prices edged lower early today as the dollar strengthened ahead of a meeting of the Federal Reserve at which the US central bank is expected to raise interest rates for the first time this year.

Spot gold was down at USD 1,312.97 an ounce in early European trade, while the dollar was slightly stronger against a basket of major currencies.

Among other precious metals, silver was down at USD 16.28 an ounce, trading at three-month lows.