Gold, silver rebound from multi-year low on buying, global rally

Mumbai: Gold and silver prices staged a strong rebound from their multi-year lows on the local bullion hub today as stockists and speculators went on a buying spree ignited by a global commodity rally overnight.

The yellow metal reclaimed the key Rs 26,000 per 10gm mark by vaulting a whopping Rs 715, its second biggest one-day gain this year. Silver spurted by a massive Rs 1,600 to reclaim the Rs 36,000 per kilo mark owing to hectic speculative buyout. Jewellery traders and stockists, who were on the sidelines expecting further price correction, got into the buying mode, triggering a rally, a bullion trader said.

Further, fall in rupee against the dollar and robust buying by retail customers for the coming marriage season amid investment off-take also supported the uptrend in the precious metals, he added. Standard gold (99.5 purity) jumped by Rs 715, or 2.78 per cent, to conclude at Rs 26,400 per 10 grams from Friday's closing level of Rs 25,685. Pure gold (99.9 purity) also zoomed by Rs 715, or 2.77 per cent, to end at Rs 26,550 per 10 grams compared to Rs 25,835 previously. Silver skyrocketed by Rs 1,630, or 4.63 per cent, to finish at Rs 36,840 per kg compared to Rs 35,210 yesterday.

On the global front, gold for December delivery rallied nearly USD 25 to settle at USD 1,185.60 an ounce on the Comex division of NEMEX. Silver December contract also soared to settle at USD 16.31 an ounce.