Gold, silver snap 6-day loss, gain on firm demand, global cues

Mumbai-India (Sept 23)  Snapping their six-session fall, gold prices recovered smartly at the domestic bullion market in Mumbai on Tuesday on renewed demand from stockists and retailers at existing lower levels amid bullish overseas sentiment.

Silver, too, followed the yellow metal and closed above Rs 40,000 per kg mark owing to good speculative off-take.

Standard gold (99.5 purity) shot up by Rs 415 to end at Rs 26,815 per 10 grams from Monday's level of Rs 26,400.

Pure gold (99.9 purity) also rose by a similar margin to finish at Rs 26,965 per 10 grams from Rs 26,550.

Silver (.999 fineness) spurted by Rs 590 to conclude at Rs 40,270 per kg as compared to Rs 39,680 on Monday.

On the global front, gold rose in early trade as the dollar eased after comments from a New York Federal Reserve official that any increase in interest rates should be done cautiously. Also US airstrikes on jihadist Islamic State's positions in Syria added to global tension and triggered demand for the shiny metal given its safe-asset appeal.

Spot gold rose to $1,232.20 an ounce and silver moved up to $17.85 an ounce in early European trade.

Source: BusinessToday