Gold bounces back on seasonal demand

Gold staged a sharp comeback by gaining Rs135 to reach Rs16,950 per 10 gm here today on a pick up in demand by retailers for the marriage season.

Silver also recovered by Rs100 to Rs27,200 per kg on increased offtake by industrial users.

Marketmen said a pick up in demand by retailers and jewellery makers for the marriage season pushed up both gold and silver prices.

Closure of the overseas markets left traders directionless with hope of a fast recovery in the global economy, which is expected to increase demand for gold as a good option for investment, they added.

Standard gold and ornaments shot up by Rs135 each to Rs16,950 and Rs16,800 per 10 gm, respectively, while sovereign gained Rs50 at Rs14,000 per 8-gm  piece. The precious metal fell Rs125 in the previous session.

In a similar manner, silver ready recovered by Rs100 to Rs27,200 per kg and weekly-based delivery by Rs10 to Rs26,780 per kg.

However, silver coins remained steady at Rs33,400 for buying and Rs33,500 for selling of 100 pieces.