Gold rebounds on wedding season buying, global cues

Snapping its four-day losing streak, Gold rebounded by Rs 100 to Rs 27,070 per ten grams at the bullion market today mainly on the back of wedding season buying by jewellers and retailers amidst a firming global trend.

Silver also strengthened by Rs 500 to Rs 37,300 per kg on increased offtake by industrial units and coin makers.

Traders said besides wedding season demand from jewellers and retailers, a firming global trend as investors weighed the outlook for US interest rates as Federal Reserve downplayed the possibility of an immediate increase, mainly influenced gold prices.

Gold in Singapore, which normally set price trend on the domestic front, climbed 0.9 percent to USD 1,211.84 an ounce and silver by 2.1 percent to USD 16.64 an ounce. In the national capital, gold of 99.9 and 99.5 percent purity recovered by Rs 100 each to Rs 27,070 and Rs 26,870 per ten gram respectively. It had lost Rs 315 in the last four days.

Sovereign followed suit and edged up by Rs 50 to Rs 23,650 per piece of eight gram. Silver ready remained in demand and advanced by Rs 500 to Rs 37,300 per kg and weekly-based delivery by Rs 435 to Rs 36,680 per kg.

Silver coins also spurted by Rs 1,000 to Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces on hectic marriage season demand.