New Delhi: Gold prices today rebounded, rising by 195 to 32,225 per 10 grams. Buying by local jewellers amid festive season demand and steady global prices helped boost domestic gold prices. Besides, weakness in the rupee, which makes imports costlier, also fuelled the upward trend in gold prices. On Wednesday, gold prices had declined by 150 to 32,030 per 10 grams. In Delhi, gold of 99.9% and 99.5% purity rose further by 195 each to 32,225 and 32,075 per 10 grams, respectively, according to a report from Press Trust of India. Sovereign gold continued to be traded at previous level of 24,700 per piece of eight grams.

Silver rates also perked up, tracking higher gold prices. Silver prices recovered by 20 to 39,500 per kg due to increased offtake from industrial units and coin makers. Following the rise in gold, silver-ready spurted 20 to 39,500 per kg and weekly-based delivery dropped by 20 to 38,840 per kg. Silver coins too traded steady at 75,000 for buying and 76,000 for selling of 100 pieces as against previous level of 73,000 and 74,000, respectively.

The rupee on Wednesday surrendered all the gains made during the day and settled 13 paise lower at 73.61 against the US dollar amid steady capital outflows and strengthening of the American currency.

Global gold prices today held steady today, trading flat at $1,222.23 an ounce at 0746 GMT, staying close to its highest since July 26 at 1,233.26 an ounce hit on Monday. According to analysts, trade war concerns, recent tensions between the United States and Saudi Arabia, and a hawkish Fed are among the factors likely to weigh on appetite for riskier assets. This bodes well for gold as a hedge against market volatility and a portfolio diversifier.

Fed policymakers are largely united on the need to raise borrowing costs further, minutes from their most recent policy meeting showed, boosting expectations the committee will stick to its hawkish stance on raising interest rates.

With Agency Inputs