Gold rallies on good offtake, silver slips

Gold prices rallied at the domestic bullion market here on good investors offtake as well as local buying interest amid bullish global cues. While, silver slipped on speculative profit-booking after its recent rally amid reduced industrial buying. Standard gold (99.5 purity) climbed by Rs 110 to close at Rs 25,840 per 10 grams from last Friday's closing level of Rs 25,730.

Pure gold (99.9 purity) also rose by a similar margin of Rs 110 per 10 grams to finish at Rs 25,990 from 25,880 previously. Silver (999 fineness) dropped by Rs 320 to conclude at Rs 36,300 per kg as against previous level of Rs 36,620. Globally, gold firmed up in European trade, building on its biggest previous weekly rise in three months following lingering uncertainty over the implications of China's yuan devaluation.

Analysts speculated that a weakening Chinese currency could prompt the Federal Reserve to postpone a rise in US interest rates, which had been expected as soon as next month. In London, spot gold were trading higher at USD 1,116.55 an ounce in early trade, while spot silver was also up at USD 15.23 an ounce.