Gold recovers on global cues, jewellers' buying

Mumbai: Riding on positive global cues and pick-up in buying by local jewellers, gold prices recovered to close at two-week high of Rs 32,400 per ten grams at the bullion market during the period under review.

Silver also reclaimed the Rs 41,000-mark by gaining a whopping Rs 900 to end at Rs 41,400 per kg on increased offtake by industrial units and coin makers.

Bullion traders said apart from a firm trend overseas after weaker-than-expected US inflation data weakened the dollar and eased concerns about acceleration of interest rate hikes by the Federal Reserve, increased buying by local jewellers to meet ongoing wedding season demand led to a rise in the precious metal's prices.

Globally, gold ended the week tad higher at USD 1,317.90 an ounce and silver at USD 16.64 an ounce in New York.

A depreciating rupee to a 15-month low against the dollar making imports of gold costlier, also supported the uptrend, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity commenced the week higher and day-to-day increased buying activity, driven by ongoing wedding season amid a firm trend overseas rallied to close two week high at Rs 32,400 and Rs 32,250, a level last seen on April 26 showing a rise of Rs 320 each.

Sovereign also moved up by Rs 100 to Rs 24,800 per piece of eight grams. In sync with gold, silver ready ended the week recording a sharp gain of Rs 900 to Rs 41,400 per kg and weekly-based delivery spurted by Rs 1,445 to Rs 40,540 per kg. Silver coins too spurted by Rs 1,000 to Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.