Snapping three-day losses, gold staged a resounding comeback today to rise by Rs 215 and reclaimed the Rs 25,000-mark at the bullion hub here.
The reversal was fuelled by a mild rebound in overseas markets where gold snapped a 10-day losing streak despite softer tone in the US dollar.
The metal witnessed a near-term rout across the global commodity markets following recent developments in Greece and Iranian Nuclear negotiations amid expectations that the US Fed will hike interest rates at its next policy meet.
Value-buying from jewellery stockists and individual investors on attractive lower levels mainly helped gold prices to rebound in domestic trade, a bullion trader said.
Standard gold (99.5 purity) jumped by Rs 215 to conclude at Rs 25,035 per 10 gm from Wednesday’s closing level of Rs 24,820.
Pure gold (99.9 purity) also rallied by a similar margin to finish at Rs 25,185 per 10 grams from Rs 24,970.
Elsewhere, silver also regained some lost ground on the back of speculative buyout.
Silver (.999 fineness) rose by Rs 200 to end at Rs 34,835 per kg as compared to Rs 34,635 yesterday.
Globally, spot gold was marginally up at USD 1,098.20 an ounce in early European trading and silver was quoted weak at USD 14.80 an ounce.
Vivek Gupta, CMT – Director Research, CapitalVia Global Research Ltd
MCX Gold August futures started the week with negative note and it’s in overall bearish trend. It made a low of 24572 on Wednesday and traded near to its 4-year low but on Thursday we saw moderate buying in it from lower levels. Gold is viewed as a safe haven for investors in periods of severe economic instability and strong indications from the Federal Reserve of an imminent interest rate hike have weighed on gold. For today, traders can use buy on lower levels strategy in MCX Gold August future and if it sustains above the levels of 25000 then it could test the level 25250 during the day.
Similarly, MCX Silver September futures was also sustaining around the lower levels, but on Thursday, moderate buying has been seen in the market & it sustained above 34000. For today, traders can use buy on lower levels strategy in MCX Silver September futures and if it sustains above the level of 34500 then it could test the level of 35000.