Gold spikes on seasonal buying; silver retraces Rs 50k mark

MUMBAI: Gold staged a strong recovery at the domestic bullion market today on renewed demand from jewellery stockists and retailers backed by wedding seasonal off-take.

The industrial metal also shot-up and reclaimed the psychological Rs 50,000 per kilo mark following heavy speculative demand amid industrial buying support.

Standard gold (99.5 purity) surged by Rs 245 to finish at Rs 30,645 per 10 grams from last Sunday's (Muhurat Session) closing level of Rs 30,400.

Pure gold (99.9 purity) also climbed by a similar margin to end at Rs 30,795 per 10 grams from Rs 30,550.

Silver ready (.999 fineness) surged by Rs 335 to conclude at Rs 50,000 per kilo as compared to Rs 49,665 previously.

The recent drop in gold prices mainly presented a buying opportunity for speculators to take long positions alongwith scattered buying by retailers at prevailing attractive low levels mainly triggered recovery in gold prices, bullion traders said.

On the global front, the shiny metal regained some lost ground after its uninterrupted seven-session downtrend on dollar weakness amid Fed tapering uncertainty.

Spot gold was bid up at USD 1,317.35 an ounce in early European trade and spot silver higher at USD 21.92 an ounce.