Gold prices snap 3-day losing streak on seasonal demand, positive global cues

Gold prices recovered by Rs 170 to Rs 26,820 per ten grams at the bullion market in the national capital on Tuesday, snapping a three-day losing streak, on revival of buying by jewellers to meet ongoing wedding season demand amid a firm global trend.

An emergence of buying by jewellers and retailers to meet seasonal demand and a firming trend overseas helped gold prices recover, traders said, adding the retreat in the dollar and domestic equity market also led to a revival in demand on the pretext of an alternative investment.

The yellow metal in Singapore, which normally sets price trend in the domestic market, traded higher at US $1,203.77 an ounce from US $1,203.51 on Monday and silver prices gained 0.4 per cent to US $16.42 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity edged higher by Rs 170 each to Rs 26,820 and Rs 26,620 per ten gram respectively. The precious metal had lost Rs 250 in the past three days.

Sovereign, however, moved in a tight range in limited deals and settled at last level of Rs 23,700 per piece of eight gram.

Similarly, silver prices also rebounded by Rs 150 to Rs 36,800 per kg on increased offtake by industrial units and coin makers.

In line with overall trends, silver ready recovered by Rs 150 to Rs 36,800 per kg and weekly-based delivery by Rs 175 to Rs 36,800 per kg.

On the other hand, silver coins maintained a steady trend at Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.