Gold recovers on low level buying, global cues

Snapping a three-day losing streak, gold prices recovered by Rs40 to Rs20,730 per 10 grams due to fresh buying by retailers at existing lower levels, supported by a firm global trend.

However, silver held steady at Rs44,800 per kg in restricted buying support from industrial units.

Traders said emergence of buying at existing lower levels amid a firm trend in global markets mainly led to a recovery in gold prices.

Gold in global markets, which normally set a price trend on the domestic front, rose by $6 to $1,375.50 an ounce in New York last evening.

On the domestic front, the gold of 99.9 and 99.5% purity recovered by Rs40 each to Rs20,730 and Rs20,610 per 10 grams, respectively. However, sovereign remained flat at Rs16,750 per piece of eight gram.

Silver ready held steady at Rs44,800 per kg, while silver weekly-based delivery gained Rs10 to Rs44,330 per kg. Silver coins continued to be asked around previous level of Rs49,000 for buying and Rs49,100 for selling of 100 pieces.