Gold recoups on positive global leads, jewellers\' buying

New Delhi: Gold prices bounced back by Rs 140 to Rs 32,970 per 10 gram at the bullion market on Tuesday on the back of positive global trend and fresh buying by local jewellers, according to All India Sarafa Association.

Silver followed suit and recovered by Rs 235 to Rs 38,960 per kg due to increased offtake from industrial units and coin makers.

Traders attributed the rise in gold prices to a firm trend overseas as the dollar weakened to two-week lows on expectations that the US Federal reserve will maintain a dovish tone at its monetary policy meeting this week.

Globally, gold rose 0.31 per cent to USD 1,308.30 an ounce and silver by 0.29 per cent to USD 15.47 an ounce in New York on Tuesday. Besides, pick-up in buying by local jewellers at domestic spot market, fuelled the uptrend.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity rebounded by Rs 140 each to Rs 32,970 and Rs 32,800 per 10 gram, respectively. It had lost Rs 540 in the past two days. Sovereign, however, remained flat at Rs 26,400 per piece of eight grams.

Silver ready also moved up by Rs 235 to Rs 38,960 per kg and weekly-based delivery by Rs 166 to Rs 38,031 per kg. Silver coins, however, continued to be traded at previous level of Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.