Gold rebounds by Rs 120 on jewellers' buying

Gold is trading at Rs 34,650 per 10 grams following increased buying by local jewellers and retailers.

 ​New Delhi: Gold prices rose Rs 120 to Rs 34,650 per 10 grams at the bullion market on Wednesday following increased buying by local jewellers and retailers, according to All India Sarafa Association.

Silver followed suit and recovered by Rs 70 to Rs 41,475 per kg due to increased offtake from industrial users and coin makers. However, global cues were weak, capping the gains in both the precious metals.

Traders attributed the rise in gold prices to pickup in buying by local jewellers at spot markets to meet ongoing wedding season demand.

Besides, weakness in the rupee which depreciated 42 paise to 71.49 against the dollar (intra-day) at the forex market, making imports costlier, too supported the upside in gold prices, they added.

Globally, spot gold fell 0.12 per cent to USD 1,327.80 an ounce and silver spot by 0.22 per cent to USD 15.94 an ounce in New York on Wednesday.

In the national capital, gold of 99.9 per cent purity rebounded by Rs 120 to Rs 34,650 and gold of 99.5 purity rose by Rs 80 to Rs 34,480 per 10 grams. Sovereign gold, however, remained flat at Rs 26,600 per piece of 8 grams on little doing.

Tracking gold, silver ready moved up by Rs 70 to Rs 41,475 per kg and weekly-based delivery rose by Rs 54 to Rs 40,130 per kg. Silver coins, however, continued to be traded at previous level of Rs 83,000 for buying and Rs 84,000 for selling of 100 pieces.