Gold prices recovered smartly after a five-session downtrend at the domestic bullion market on Saturday on a fresh bout of demand from stockists and traders.

Tracking the general positive trend, silver, too, spurted owing to aggressive speculative as well as industrial offtake.

Standard gold (99.5 purity) rose by Rs 195 per 10 gm to finish at Rs 30,870 from overnight closing level of Rs 30,675.

Pure gold (99.9 purity) strengthened by Rs 175 per 10 gm to close at Rs 31,015 from Rs 30,840.

Silver ready (.999 fineness) shot up by Rs 430 per kg to end at Rs 60,570 as against Friday’s close of Rs 60,140.

“The sudden spike in precious metals was due to attractive valuations after the recent fall and revival in jewellery demand,” traders said.

Active buying interest from investors and retailers at current levels ahead of peak festival and wedding season also supported the rise,” they said.

On the global front, gold remained under immense selling pressure on the back of positive US economic data amid ongoing uncertainty over Spain’s bailout request.

Gold for December delivery shed $1.10 to settle at $1,711.90 an ounce (28 gm) on the Comex division of the NYMEX.

December silver contract eased to conclude at $32.04 an ounce.

(This article was published on October 27, 2012)
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