Gold gains 230 on global cues, seasonal demand

Snapping its nine-day losing streak, gold prices recovered by Rs. 230 to Rs. 28,260 per 10 grams in the national capital on Tuesday on a firming trend overseas and emergence of buying by jewellers and retailers at existing levels.

Silver also rose by Rs. 400 to Rs. 43,000 per kg on increased off-take by industrial units and coin makers.

Traders said rebound in gold prices was mostly in tandem with a firming global trend on speculation that prices near a two-month low will spur purchases.

Besides, emergence of buying by jewellers as well as retailers to meet seasonal demand, influenced gold prices, they said.

Gold in Singapore, which normally determines price trend on the domestic front, rose by one per cent to $1,289.06 an ounce and silver by one per cent to $19.54 an ounce.

In Delhi, gold of 99.9 and 99.5 per cent purity recovered by Rs. 230 each to Rs. 28,260 and Rs. 28,060 per 10 grams, respectively. It had lost Rs. 790 in the previous nine straight sessions.

Sovereign, however, continued to be traded steady at Rs. 24,600 per piece of eight grams in limited deals.

In line with a general firm trend, silver ready rose by Rs. 400 to Rs. 43,000 per kg and weekly-based delivery by Rs. 295 to Rs. 42,195 per kg.

On the other hand, silver coins remained steady at Rs. 74,000 for buying and Rs. 75,000 for selling of 100 pieces.