Gold spurts Rs 355, silver tops Rs 37,000-mark on strong demand

Gold prices rebounded smartly by Rs 355 at the bullion market here today following renewed demand from stockists and retailers, even as metal weakened overseas.

Silver prices firmed up for the second straight session, rising by Rs 390 to close above the 37,000 mark at Rs 37,105 per kg on persistent offtake by industrial units and coin makers.

Standard gold (99.5 per cent purity) climbed by Rs 355 to finish at Rs 29,885 per 10 gram from last Friday's closing level of Rs 29,530.

Pure gold (99.9 per cent purity) also moved up by a similar margin to end at Rs 30,035 per 10 gram against Rs 29,680, earlier.

Silver (.999 fineness) advanced by Rs 390 to conclude at Rs 37,105 per kg compared to Rs 36,715.

Globally, gold inched lower as the dollar firmed, reversing some of the previous sessions gains which came after the US Federal Reserve chairman reiterated the central banks intention to raise interest rates further, albeit at a gradual rate.

Spot gold was down 0.2 per cent at USD 1,204.76 per ounce in an early trade. Spot silver was down 0.2 per cent at USD 14.760 an ounce.