Gold rebounds as dollar slides

Gold rebounds as dollar slides

New Delhi: Gold prices rose by 50 to 17,260 per 10 gram in the bullion market on Monday on emergence of fresh buying as dollar fell, spurring demand for the precious metal.

Marketmen said buying by stockists and jewellery makers, influenced by a firming global trend, also supported the uptrend in prices.

Gold in Asia rose 1.1% at $1127.65 an ounce.

The precious metal also gained from dollar weakness as it typically moves inversely to the US currency.

The US Dollar Index, a measure against six major currencies, fell as much as 0.4% as Abu Dhabi pledged $10 billion loan to bail out Dubai.

Standard gold and ornaments recovered by Rs150 each to Rs17,260 and Rs17,110 per 10 gram respectively.

Sovereign followed suit and gained 00 at 14,000 per piece of eight gram.

Silver ready rose by 50 to 7,700 per kg and weekly-based delivery by 50 to 27,500 per kg.

In line with a general firming trend, silver coins traded higher by Rs200 to Rs33,400 for buying and Rs33,500 for selling of 100 pieces.