Gold rebounds on geopolitical tension, jewellers buying

Monday, Jan 4, 2016,16:49 IST By Metrovaartha A A A

New Delhi | Gold prices recovered by Rs 195 to Rs 25,615 at the bullion market today, tracking a firm overseas trend as rising tension between Saudi Arabia and Iran raised demand for the precious metals amid fresh buying by domestic jewellers.

Silver rose by Rs 325 to Rs 33,625 per kg on increased offtake by industrial users and coin makers.

Traders said a firm trend in global market as escalating tension between Saudi Arabia and Iran prompted a return to haven assets, mainly boosted the precious metals here.

Globally, gold rose by 0.9 per cent to USD 1,070.27 an ounce and silver rose 0.8 per cent to USD 13.93 an ounce in Singapore today. Gold, traditionally seen as a store of value during political turmoil.

In addition, pickup in buying by jewellers also supported the upside, they said. In the national capital, gold of 99.9 and 99.5 per cent purity surged by Rs 195 each to Rs 25,615 and Rs 25,465 per ten grams, respectively.

The precious metal had lost Rs 90 on Saturday. Sovereign, however, continued to be traded at last level of Rs 22,200 per piece of eight gram.

Tracking gold, silver ready prices shot up by Rs 325 to Rs 33,625 per kg and weekly-based delivery by Rs 235 to Rs 33,570 per kg. On the other hand, silver coins were unchanged at Rs 47,000 for buying and Rs 48,000 for selling of 100 pieces.