Gold, silver rebound on frantic speculative buying

MUMBAI: Both the precious metals gold and silver rebounded smartly from its overnight steep slide at the domestic bullion market here on Friday, sidelining global bearishness.

The yellow-metal bounced back on renewed buying interest from investors and stockists amid strong jewellery off-take at lower levels.

Silver also recouped sharply to retrace the Rs 50,000 a kg milestone on frantic speculative demand from day traders.

Standard gold of 99.5 per cent purity surged by Rs 530 to finish at Rs 27,100 per 10 grams from Thursday's closing level of Rs 26,570.

Pure gold of 99.9 per cent purity also rallied by Rs 535 to end at Rs 27,230 per 10 grams from Rs 26,695 previously.

Silver ready (.999 fineness) jumped by Rs 1,825 to conclude at Rs 50,965 per kg from Rs 49,140 yesterday.

On the global front, gold continued its uninterrupted six session downtrend on the back of encouraging US economic data and strong dollar valuation amid heavy liquidation from traders before year end.

In New York, gold for February delivery down USD 23.20 to settle at USD 1,540.90 an ounce on the Comex division of the NYMEX late yesterday, while silver March contract gained 8 cents to at USD 27.32 an ounce.