Gold rebounded after a brief correction with bullish undertones and closed above the psychologically significant Rs 25,000-mark in a holiday-shortened week at the domestic bullion hub here. Renewed demand from jewellery stockists and traders as well as hectic buying activity from retail consumers mainly helped gold prices to regain lost ground.
Bullish overseas sentiment in the aftermath of Federal Reserve’s historic rate hike also supported the upmove. The US Federal Reserve had lifted the interest rate by 25 basis points last week – the first in nearly a decade, ending months of lingering confusion and uncertainty.
Trading activity was understandably lacklustre due to closure of markets in view of Id-A-Milad and Christmas on Thursday and Friday, respectively even as investors preferred to lighten positions in the absence of fresh news to stimulate decisive price action.
Elsewhere, silver also staged a rebound after a straight-three week fall on heavy industrial demand coupled with good speculative offtake. In worldwide trade, the shiny-metal recouped most of its losses triggered by Fed-infused sell-off following heavy short-covering, despite better than expected US macro data.
In New York Comex trade, gold for February contract edged higher to settle at USD 1,076 an ounce from last Friday’s level of USD 1,065 and March silver delivery also moved up to settle at 14.379 an ounce against USD 14.096.
On the domestic front, standard gold (99.5 purity) commenced higher at Rs 25,155 per 10 grams compared to preceding weekend level of Rs 24,935 and strengthened further to Rs 25,300, before ending at Rs 25,195, revealing a smart gain of Rs 260 per 10 grams, or 1.04 per cent.
Similarly, pure gold (99.9 purity) also resumed firm at Rs 25,305 per 10 grams from last Friday’s closing level of Rs 25,085 and advanced further to Rs 25,450, before finishing at Rs 25,345, showing a rise of Rs 260 per 10 grams, or 1.04 per cent.
Silver ready (.999 fineness) opened with a gap-up at Rs 34,145 per kilo from previous closing of Rs 33,520 and continued its upward march to hit a high of Rs 34,485, before concluding at Rs 34,460, registering a sharp gain of Rs 940 per kilogram, or 2.80 per cent.
