Gold recovers on scattered buying; silver strengthens

Gold prices recovered by Rs 50 to Rs 29,250 per 10 gm at the bullion market today on scattered buying by jewellers and retailers even as the yellow metal weakened overseas.

Similarly, silver rose further by Rs 450 to Rs 38,650 per kg on increased offtake by industrial units and coin makers.

Traders attributed the recovery in gold prices to some buying by jewellers and retailers to meet upcoming marriage season demand.

They said, however, weakening global trend where gold fell for the third day as equities climbed and extension of the biggest rally in a dollar gauge capped the rise.

Globally, gold fell 1.1 per cent to USD 1,229.20 an ounce, the lowest intra-day level since April 7, in Singapore.

In the national capital, gold of 99.9 and 99.5 per cent purity recovered by Rs 50 each to Rs 29,250 and Rs 29,100 per ten grams, respectively. It had lost Rs 200 yesterday.

On March 1, a day before jewellers began their strike, gold 99.9 purity prices were ruling at Rs 29,400.

Sovereign, however, held steady at Rs 23,100 per piece of eight gram.

On the other hand, silver ready advanced by Rs 450 to Rs 38,650 per kg and weekly-based delivery by Rs 490 to Rs 38,560 per kg.

Meanwhile, silver coins traded at last level of Rs 58,000 for buying and Rs 59,000 for selling of 100 pieces.

The jewellers temporarily called-off their 42-day strike yesterday, demanding rollback of proposed 1 per cent excise duty on non-silver jewellery for 12-days after the government's assurance that there will be no harassment by excise officials.