Gold firms up on good seasonal offtake amid global cues

MUMBAI: Gold prices bounced back at the domestic bullion market today due to renewed buying interest from jewellery traders and retailers ahead of festivities amid buoyant overseas sentiment.

Elsewhere, silver continued its rising trend for the third straight session on the back of heavy demand from industrial users.

Gold is witnessing some momentum and demand is picking up gradually as jewellery stockists and traders are restocking ahead of festivals like Diwali, Dhanteras and for the upcoming wedding season, a bullion trader said.

Standard gold (99.5 purity) moved up by Rs 30 to end at Rs 26,965 per 10 grams from last Saturday's level of Rs 26,935.

Pure gold (99.9 purity) also added by a similar margin to finish at Rs 27,115 per 10 grams compared to Rs 27,085.

Silver (.999 fineness) jumped by Rs 110 to conclude at Rs 39,470 per kg against against weekend level of Rs 39,360.

On the global front, shiny-metal rallied to a four-week high after speculators turned highly bullish over the precious metal as heightened concerns over faltering global economic outlook amid easing fears of an earlier-than-expected US interest rate hikes, boosting demand for safe haven assets.

Spot gold was sharply higher at $1,237.30 an ounce in early European trade.