Gold prices increase on seasonal offtake amid global buoyancy

Gold prices rose firmly at the domestic bullion market in Mumbai on Monday on increased demand from jewellery stockists and retailers amid good local buying support ahead of festive and wedding season. Elsewhere, silver recovered sharply owing to robust demand from consuming industries.

Standard gold (99.5 purity) rose by Rs 75 to conclude at Rs 27,315 per 10 grams from last Saturday's level of Rs 27,240. Pure gold (99.9 purity) also added by a similar margin to settle at Rs 27,465 per 10 grams against Rs 27,390.

Silver (.999 fineness) climbed by Rs 375 to finish at Rs 39,645 per kg compared to Rs 39,270 last weekend.

Globally, the precious metal rebounded to nearly one- month high on safe haven buying despite better than expected economic data from the US.

Spot gold bid higher at US $1,240.40 an ounce in early European trade.