Gold rebounds on renewed demand, seasonal support

Gold prices rose modestly after a three-day downtrend at the domestic bullion market here due to increased buying by stockists and jewellers ahead of the festive season. On the other hand, silver declined owing to lack demand from industrial users. Standard gold (99.5 purity) firmed up by Rs 70 to end at Rs 26,395 per 10 grams from Friday's closing level of Rs 26,325.

Pure gold (99.9 purity) also moved up by a similar margin to settle at Rs 26,545 per 10 grams compared to Rs 26,475 previously. However, silver (.999 fineness) fell by Rs 60 per kg to close at Rs 35,595 from Rs 35,655 yesterday. Globally, the shiny-metal retreated to settle at its lowest level in more than two weeks following healthy US jobs data amid expectations of a rate hike by the Fed this month.

Gold for December delivery lost USD 3.10 to conclude at USD 1,121.40 an ounce on the Comex divison of the NYMEX late yesterday, while silver softened to USD 14.549 an ounce.