Gold, silver bounce back on festive offtake

Gold bounce-backed to near month high at the bullion market today on sustained demand from stockists and traders supported by good local buying interest at the existing lower levels due to ensuing festival seasons.

Silver also rebounded smartly to regain Rs 48,000 per kg level owing to good speculative demand.

Standard gold of 99.5 per cent purity surged by Rs 340 to close at Rs 30,605 per 10 gram, from yesterday's closing level of Rs 30,265.

Pure gold of 99.9 per cent purity spurted by a similar margin to conclude at Rs 30,755 per 10 gram from Rs 30,415.

Silver ready (.999 fineness) zoomed by Rs 1,105 to finish at Rs 48,330 per kg from Rs 47,225 yesterday.

At the international markets, gold was trading mostly flat as investors were adopting a wait and watch approach after US lawmakers gave renewed assurances of settlement on averting US default.

Spot gold bid stable at USD 1,280.66 an ounce in early trade, while silver bid higher at USD 21.71 an ounce.