Gold prices recovered by Rs. 140 to Rs. 18,700 per ten grams in the national capital today as stockists and jewellers replenished their stocks following a rebound in prices of the precious metal in global markets.
Silver also rose by Rs. 350 to Rs. 29,250 per kg on increased offtake by industrial units and coin-makers.
The trading sentiment turned bullish after gold climbed in global markets on speculation that the precious metal’s descent to its lowest level in almost six weeks is prompting some investors to increase their holdings.
Gold in overseas markets, which normally sets the price trend on the domestic front, rose 0.2 per cent to $ 1,204.73 an ounce. The metal fell to $ 1,185 yesterday, its lowest price since May 24.
Traders said the emergence of buying by stockists and jewellers for the current marriage season amid the firming global trend mainly led to the rise in gold and silver prices.
The firming trend in futures trading also influenced the trading sentiment, they said.
Gold of 99.9 per cent and 99.5 per cent purity recovered by Rs. 140 each to Rs. 18,700 and Rs. 18,600 per ten grams, respectively.
They had lost Rs. 190 in previous trade. Sovereigns also gained Rs. 25 to Rs. 14,700 per piece of eight grams.
In line with the general firming trend, silver staged a come back on fresh buying by industrial units. Silver ready jumped by Rs. 350 to Rs. 29,250 per kg and weekly-based delivery rose by Rs. 365 to Rs. 29,040 per kg.
The price of silver coins also shot up by Rs. 300 to Rs. 34,300 for buying and Rs. 34,400 for selling of 100 pieces.