Gold and jewellery establishments in many parts of the country remained closed for the 8th day today as traders continue their protest against the budgetary proposal to levy 1 per cent excise duty on non-silver jewellery.
After a two-day slide, gold prices rebounded Rs 140 to Rs 26,750 per 10 grams at the bullion market today, tracking a firm trend overseas and fresh bouts of buying by jewellery stockists to meet wedding season demand.
Bullion traders said besides a weak trend overseas where it declined after posting the best week of gains since August, fall in demand from jewellers and retailers at prevailing levels mainly pulled down both gold and silver
Traders said apart from fall in demand from jewellers and retailers at prevailing levels, absence of cues from overseas markets which are closed for the New Year, mainly led to the decline in gold prices.
Marketmen said tepid demand from jewellers and retailers following end of wedding season mainly kept pressure on gold prices but a better trend overseas as a drop in the dollar boosted appeal of the metal, capped the losses.