Gold price recovers on seasonal demand amid global support

Gold prices rose firmly on the domestic bullion market in Mumbai on Tuesday on fresh bouts of buying from jewellery stockists and retailers amid a firming trend overseas.

Elsewhere, silver also regained some lost ground owing to heavy speculative offtake coupled with good industrial demand.

Standard gold (99.5 purity) climbed by Rs 180 to finish at Rs 26,740 per 10 grams from last Saturday's closing level of Rs 26,560.

Pure gold (99.9 purity) also spurted by a similar margin to end at Rs 26,890 per 10 grams against Rs 26,710 previously.

Silver (.999 fineness) jumped by Rs 255 to conclude at Rs 39,380 per kg compared to Rs 39,125 last weekend.

On the global front, the yellow metal witnessed a dramatic rebound after plunging to fresh 2014 lows on the back of hectic short covering as bargain hunters lent support in the face of weak dollar and falling equities, but optimism over the US economy and possibility of higher rates kept the investors wary.

Spot gold was bid higher at $1,206.30 an ounce in early European trade.