Gold zooms Rs 300 on strong global cues, jewellers' buying

New Delhi: Gold staged a smart recovery at the bullion market on Saturday, surging Rs 300 to Rs 29,550 per 10 grams largely on firm global cues and pick up in buying by local jewellers.

Silver followed suit and recaptured the Rs 40,000-mark by spurting Rs 1,170 to Rs 40,470 per kg on increased offtake by industrial units and coin makers.

Bullion traders attributed the recovery in gold prices to a firm trend overseas after a lacklustre US jobs report, showing unemployment in May fell to 4.3 percent, a 16-year low, raised expectations that the Federal Reserve could take a more gradual approach to increasing interest rates.

Moreover, increased buying by local jewellers at the domestic spot market, supported the upside in the precious metal prices, they said.

Globally, gold climbed 1.04 percent to USD 1,278.50 an ounce while silver gained 1.48 percent to USD 17.53 an ounce in New York in yesterday's trade.

At the national capital, gold of 99.9 percent and 99.5 percent purity recovered sharply by Rs 300 each, to Rs 29,550 and Rs 29,400 per 10 grams, respectively. It had lost Rs 100 in yesterday's trade.

Sovereign, however, remained flat at Rs 24,400 per piece of eight grams.

Tracking gold, silver ready spurted by Rs 1,170 to Rs 40,470 per kg and weekly-based delivery flared up by Rs 2,075 to Rs 41,275 per kg.

On the other hand, silver coins remained steady at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.