Free Press Journal

Gold bounces on renewed demand, seasonal off-take weighs



Mumbai: Gold prices witnessed a smart rebound here today on fresh bout of buying from stockists and jewellery makers despite sluggish global sentiment.

On the other hand, silver remained under intense selling pressure following sustained unwinding by speculators and traders amid lack of industrial buying support.

Prices were also supported by good investment buying as well as pent up demand from retail consumers in view of the ongoing wedding season.

Standard gold (99.5 purity) spurted by Rs 181 to quote at Rs 29,336 per 10 grams at 1700 hrs from Tuesday’s level of Rs 29,155, a bullion trader said.

Pure gold (99.9 purity) also rose by a similar margin to Rs 29,486 per 10 grams from Rs 29,305 previously, according to Riddisiddhi Bullions Ltd.

Silver (.999 fineness), however slumped by Rs 408 to Rs 42,776 per kg at 1700 hrs as compared to Rs 43,184 yesterday.

Globally, the shiny metal dropped sharply following heavy profit-taking on the back of improvement in U.S. economic outlook and strengthening dollar valuation.

Gold for June delivery plunged by USD 27.20 to settle at USD 1,300.30 an ounce on the Comex division of the NYMEX late yesterday, while silver May contract fell 52 cents to end at USD 19.49 an ounce.