Gold rebounds sharply on global cues

Gold rebounds sharply on global cues

Mumbai: Gold prices rebounded sharply from its overnight fall by Rs475 per 10 grams at the bullion market on Tuesday on emergence of fresh buying by stockists and speculators, sparked by an uptrend in the global arena.

Gold met with heavy sell-off in previous trade across the international markets in a knee-jerk reaction to $1 trillion global emergency fund infusion by European policy makers, triggering a rally in financial markets.

However, investors still consider gold, which drove the prices higher on Tuesday’s trade, as a safe bet, traders said.

Moving with general trend, silver also firmed up on heavy stockists’ demand amid increased off-take from consumer industries.

Standard gold (99.5 purity) recouped by Rs475 per 10 grams to end at Rs17,970 from its previous closing level of Rs17,495.

Pure gold (99.9 purity) jumped by Rs480 per 10 grams to finish at Rs18,060 as against Rs17,580 on Monday.

Silver ready (.999 fineness) hardened by Rs235 per kilo to conclude at Rs29,275 from Rs29,040 previously.

In London, spot gold was bid at $1,216.76 an ounce in early trade as against $1,201.90 late in New York on Monday.

US gold futures for June delivery rose by $15.80 to $1,216.50 an ounce on the Comex division of the NYMEX.