Gold, silver snap losing streak on seasonal demand, global cues

NEW DELHI: Snapping an almost week-long losing streak, silver and gold prices recovered in the national capital today on the back of a pick up in seasonal demand amid a firm global trend.

While silver surged by Rs 1,230 to Rs 40,430 per kg, gold rose by Rs 120 to Rs 20,340 per 10 grams, as retailers and jewellers increased their holdings of the precious metals to cash in on the marriage season.

Buying activity in the domestic market was also driven by a rise in gold prices overseas for the first time in five days, ending the precious metal's worst losing streak since July on increased investment demand and signs that global sales will remain robust.

Gold in global markets, which normally sets the price trend on the domestic front, gained 1.4 per cent to USD 1,354.44 an ounce and silver by 2.3 per cent to USD 26.23 an ounce.

Gold of 99.9 per cent and 99.5 per cent purity recovered by Rs 120 each to Rs 20,340 and Rs 20,210 per 10 grams, respectively. The metal had lost Rs 380 in last five trading sessions.

However, sovereigns remained stable at Rs 16,400 per piece of eight grams in restricted buying.

In line with the general firm trend, silver ready prices spurted by Rs 1,230 to Rs 40,430 per kg and weekly-based delivery by Rs 1,115 to Rs 39,870 per kg.

Silver coins also rose by Rs 200 to Rs 43,900 for buying and Rs 44,000 for selling of 100 pieces.