Gold bounces higher on seasonal uptick, global support

Mumbai: Gold prices bounced back at the domestic bullion market here on renewed offtake from jewellery traders and retail consumers amidst good local buying interest ahead of the year-end festivities and wedding season.

Elsewhere, silver also regained some lost ground after a sharp overnight plunge owing to heavy speculative demand. Standard gold (99.5 purity) rose by Rs 40 to settle at Rs 26,895 per 10 grams as against Friday's closing level of Rs 26,855. Pure gold (99.9 purity) also fell by the same margin to end at Rs 27,045 per 10 grams from Rs 27,005. Silver (.999 fineness) climbed by Rs 235 to finish at Rs 37,260 per kg as compared to Rs 37,025 yesterday.

In the worldwide trade, the shiny metal gained marginally on bargain hunting, but failed to close above the crucial USD 1200-level on dollar strength and also Fed rate hike uncertainty. Gold February delivery inched up to settle at USD 1,196 an ounce on the Comex division of the NYMEX late yesterday and silver March contract finished at USD 16.03 an ounce.