Gold prices rebound on seasonal demand; silver prices extend losses

Mumbai-India (Mar 28)  Gold prices staged a modest rebound after a brief overnight slide on the bullion market on Saturday following renewed offtake by jewellery stockists and retailers amidst seasonal demand.

Standard gold (99.5 purity) rose by Rs 45 to finish at Rs 26,565 per 10 grams from Friday's closing level of Rs 26,520.

Pure gold (99.9 purity) also edged higher by a similar margin to settle at Rs 26,715 per 10 grams as against Rs 26,670 previously.

In contrast, silver prices slumped further due to sustained speculative unwinding as well as sluggish industrial buying.

However, silver (.999 fineness) shed Rs 175 to end at Rs 38,600 per kg as compared to Rs 38,775 yesterday.

Meanwhile, the yellow metal settled below the significant US $1,200-level in global trade on the back of firm dollar amid caution after US Federal Reserve Chair Janet Yellen reiterated that the Federal Open Market Committee (FOMC) was giving "serious consideration" to start the process of lifting US interest rates later in 2015.

Gold for April delivery drifted to settle at US $1,199.80 an ounce on the Comex division of the NYMEX late on Friday, while silver prices softened to US $17.069 an ounce.

Source: BusinessToday