Gold recovers on global cues, jeweller buying

Gold prices edged higher by Rs 15 to Rs 31,585 per 10 grams at the bullion market today, snapping its two-day slide following a firm trend overseas coupled with a pick-up in buying by the local jewelers. On the other hand, silver ready slumped by Rs 250 to Rs 40,750 per kg, below the Rs 41,000-mark, due to reduced offtake by industrial units and coin makers. Traders attributed the recovery in gold prices to a firm trend overseas where the precious metals traded higher, after hitting a six-month trough in the previous session, as the dollar pulled back from an 11-month peak on profit-booking.

Globally, gold rose by 0.09 percent to USD 1,268 an ounce in Singapore. In addition, increased buying by local jewelers at domestic spot market also supported the uptrend, they said. In the national capital, gold of 99.9 percent and 99.5 percent purity inched up by Rs 15 each to Rs 31,585 and Rs 31,435 per 10 grams, respectively. It had lost Rs 330 in the last two days. Sovereign gold, however, remained flat at Rs 24,800 per piece of eight grams.

On the other hand, silver ready fell by Rs 250 to Rs 40,750 per kg, while weekly-based delivery traded higher by Rs 105 to Rs 39,595 per kg on speculative buying. Silver coins, however, remained flat at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.