Gold price recovers on low-level buying, global cues

New Delhi-India (May 30)  Snapping its four-day falling run, gold prices recovered by Rs 55 to trade at Rs 27,330 per ten grams at the bullion market on revival of buying by jewellers at prevailing lower levels amid a better global trend.

However, silver fell by Rs 175 to Rs 38,575 per kg owing to reduced offtake by industrial users and coin makers.

Traders said besides buying by jewellers at existing levels, a firm global trend after the US economy contracted in the first quarter, easing concern that the Federal Reserve will be quick to raise interest rates for the first time since 2006, mainly led to the recovery in gold prices here.

Gold in New York, which normally determines price trend on the domestic front, rose by 0.1 per cent to USD 1,189.80 an ounce and silver by 0.2 per cent to USD 16.70 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity rose by Rs 55 each to Rs 27,330 and Rs 27,180 per ten grams, respectively. The precious metal lost Rs 200 in the previous four sessions.

Sovereign, however, remained steady at Rs 23,700 per piece of eight gram in restricted buying.

On the other hand, silver ready drifted by Rs 175 to Rs 38,575 per kg and weekly—based delivery shed Rs 25 at Rs 38,350 per kg.

Silver coins, however, continued to be traded at last level of Rs 56,000 for buying and Rs 57,000 for selling of 100 pieces.

Source: TheHIndu