Gold price rebounds on renewed demand, silver weakens

Mumbai: Snapping a two-session fall at the domestic bullion market here, gold prices rebounded Tuesday amid fresh buying by jewellery stockists.

On the other hand, silver continued to decline on lack of buying enquires.

Standard gold (99.5 purity) firmed up by Rs 75 per 10 grams to end at Rs 28,160 from yesterday's closing level of Rs 28,085.

Pure gold (99.9 purity) also edged up by a similar margin to settle at Rs 28,310 per 10 grams against Rs 28,235 earlier.

However, silver (.999 fineness) drifted by Rs 175 to conclude at Rs 36,700 per kg from Rs 36,875 yesterday.

In worldwide trade, gold fell, extending losses after its biggest weekly drop since early November, as the dollar firmed ahead of a speech by Federal Reserve Chair Janet Yellen which will be watched for clues on the US monetary policy.

Spot gold was down 0.2 percent at USD 1,217.96 an ounce in European trade, after touching a one-month low on Monday at USD 1,208.15 an ounce.

Among other precious metals, silver was down 0.6 percent at USD 15.12 an ounce.