Precious metals bounce back on low level buying

After a steep fall in the previous session, both the precious metals, gold and silver bounced back in the national capital today on emergence of buying at lower levels even as metal declined in overseas markets.

Marketmen said emergence of buying at existing lower levels for the ensuing wedding season mainly led recovery in both gold and silver prices.

They said the buying activity was strong enough and reduced the impact of weakening global trend.

Gold in overseas markets dropped after Federal Reserve minutes showed policy makers may end monthly purchases of US debt sometime this year.

On the domestic front, gold of 99.9 and 99.5 per cent purity rebounded by Rs 120 each to Rs 31,140 and Rs 30,940 per 10 grams respectively. The metal had tumbled by Rs 380 yesterday. Sovereign followed suit and rose by Rs 50 to Rs25,450 per 10 gram.

In a similar fashion, silver ready bounced back by Rs 1,000 to Rs 57,900 per kg and weekly-based delivery by Rs 920 to Rs 57,940 per kg. Silver also spurted by Rs 2,000 to Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.

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