Gold rebounds on strong demand, global firmness

Gold staged a smart rally and retraced the important Rs 27,000 per 10 gm mark at the bullion market here today, snapping a three-day losing streak on fresh bouts of investment buying amid supportive global sentiment.

Silver also rose sharply on heavy speculative as well as industrial off-take.

Standard gold of 99.5 per cent purity gained Rs 245 to end at Rs 27,140 per 10 gm from Friday's closing level of Rs 26,895.

Pure gold of 99.9 per cent purity climbed up by Rs 260 to conclude at Rs 27,290 per 10 gm from Rs 27,030.

Silver ready (.999 fineness) jumped by Rs 650 to close at Rs 43,000 per kg from Rs 42,350 previously.

Gold has been on a downward journey, spooked by a widespread global commodity meltdown after US Federal Reserve Chairman Ben Bernanke hinted at an end to monetary stimulus measures earlier than expected.

The yellow metal had lost a hefty Rs 1,130 in the last three days.

Globally, the shiny metal gained marginally from three- year lows on bargain hunting and some technical buying support.

Gold for August delivery edged up USD 5.80 to settle at USD 1,292.10 an ounce on the Comex division of the NYMEX late yesterday.

Silver July contract added 14 cents to settle at USD 19.96 an ounce.