Gold, silver rebound on strong festive demand, global cues

While gold surged Rs 240 to Rs 31,500 per 10 grams after losing Rs 540 in last three sessions, silver climbed by Rs 370 to Rs 60,300 per kg, after losing Rs 1470 in the previous four sessions.

Traders said the sentiment turned better on rising demand on beginning of 'Navratri', an auspicious week in Hindu mythology for purchasing new things, particularly precious metals.

They said gold gaining in global markets, before European Union leaders summit this week amid speculation that Spain may accept credit from a rescue fund, weakening the dollar, which rising precious metals demand.

In Singapore, gold rose by 0.3 per cent to USD 1,753.53 an ounce and silver by 0.6 per cent to USD 33.15 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity surged by Rs 240 each to Rs 31,500 and Rs 31,300 per 10 grams, respectively, while sovereigns gained Rs 50 to Rs 25,450 per piece of eight grams.

In line with a general firming trend, silver ready shot up by Rs 370 to Rs 60,300 per kg and weekly-based delivery by Rs 350 to Rs 60,250 per kg. Silver coins too spurted by Rs 1,000 to Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces on upsurge in demand due to festive season.