Gold sheds two-day losing streak on firm global cues, domestic demand

Snapping its two-day falling run, gold prices rebounded by Rs 200 to Rs 26,370 per 10 grams at the bullion market today, tracking a firm trend overseas amid fresh buying by jewellers.

Silver also surged by Rs 1,050 to Rs 35,500 per kg on increased offtake by industrial units and coin makers.

Bullion traders said sentiment improved after gold advanced from three-month lows in global markets on the basis of a weak dollar, raising demand for the precious metals.

Gold in Singapore, which normally sets the price trend on the domestic front, rose by 0.7% to $1,166.69 an ounce and silver advanced 1.5% to $15.39 an ounce. In the national capital, gold of 99.9 and 99.5% purity recovered notably by Rs 200 each to Rs 26,370 and Rs 26,220 per ten grams respectively. The precious metal had lost Rs 400 in last two days.

Sovereign also moved up by Rs 100 to Rs 23,100 per piece of eight gram.

Following gold, silver ready flared up by Rs 1,050 to Rs 35,500 per kg and weekly-based delivery by Rs 1,120 to Rs 35,280 per kg.

Meanwhile, silver coins held steady at Rs 53,000 for buying and Rs 54,000 for selling of 100 pieces.