Gold bounces from 23-month low, surges Rs 780 on global cues

Gold prices recovered from 23-month low by surging Rs 780 to Rs 26,430 per ten grams in the bullion market today on revival of buying by stockists at attractive lower levels amid a rebound in global markets.

Silver also staged a strong comeback by jumping Rs 1,990 to Rs 41,000 per kg on increased offtake by industrial units and coin makers.

Sentiment turned better as retailers indulged in low level buying, traders said. Firm global trend, where gold rebounded from a 34-month low on increased demand for jewellery, coins and bars also supported the uptrend, they said.

Gold in New York, which normally set price trend on the domestic front, advanced 2.87 per cent to USD 1,235.30 an ounce, heading for the biggest gain since May 20.

Earlier, the price touched USD 1,180.50, the lowest since August 2010 and silver jumped 6.21 per cent to USD 19.66 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity rebounded by Rs 780 each to Rs 26,430 and Rs 26,230 per ten grams, respectively. It tumbled by Rs 1,150 yesterday.

Sovereign, however, lacked necessary buying support and lost Rs 200 at Rs 23,600 per piece of eight gram.

In line with a general firm trend, silver ready staged a strong comeback by jumping Rs 1,990 to Rs 41,000 per kg and weekly-based delivery by Rs 550 to Rs 40,250 per kg. The white metal had lost Rs 1,490 in the previous session.

Silver coins also spurted by Rs 2,000 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.