Gold recovers on renewed buying, silver surges ahead of Fed outcome

Snapping its two-day falling streak, gold prices recovered by Rs 110 per ten grams at the bullion market on Wednesday, tracking a firm trend overseas amid renewed buying by jewellers demand.

Silver also rose by Rs 410 per kg on good speculative offtake and industrial offtake.

Standard gold (99.5 purity) moved up by Rs 110 to close at Rs 29,800 per 10 grams from Tuesday's closing level of Rs 29,690.

Pure gold (99.9 purity) also rose by a similar margin to end at Rs 29,950 per 10 grams as against Rs 29,840 previously.

Silver (.999 fineness) climbed by Rs 410 per kg to close at Rs 39,865 as compared to Rs 39,455 earlier.
 
Globally, Gold prices rose, aided by a weaker dollar ahead of a US Federal Reserve policy announcement that could signal whether it will raise interest rates for a third time this year.

Spot gold was up 0.3 per cent at $1,315.27 an ounce in early trade.

In other precious metals, silver was up 0.3 per cent at $17.38 an ounce.