Gold bounces after free-fall on strong retail buying
Mumbai: Gold prices witnessed a dramatic rebound after a sudden overnight flash crash from its historic high at the domestic bullion market Saturday on frenzied retail investment buying amid heavy speculative offtake.
Silver also gained marginally owing to some low-level buying support.
The precious metals had succumbed to heavy unwinding from speculators and savvy traders yesterday, leading to a massive price correction with gold sinking by a hefty 5 percent and silver by 7 percent.
Riding high on the back of sinking rupee value amid supply crunch owing to import curbs as well as strong stockists and jewellery demand ahead of festive and wedding season, the yellow metal had conquered the new milestone of Rs 33,000 per 10 gm on Wednesday.
Standard gold of 99.5 percent purity rose by Rs 430 to finish at Rs 31,950 per 10 gm from Friday's closing level of Rs 31,520. Pure gold of 99.9 percent purity soared by Rs 440 to to conclude at Rs 32,120 from Rs 31,680.
Silver ready (.999 fineness) moved up by Rs 85 to end at Rs 55,110 per kg as compared to Rs 55,025 yesterday.
Meanwhile, globally, the shiny metal suffered a major setback and slumped below the key psychological USD 1,400 an ounce level following investors' selling amid easing fears over an imminent military action on Syria.
Gold for December delivery fell USD 16.80 to settle at USD 1,396.10 an ounce on the Comex division of the NYMEX late yesterday and silver for December contract also lost 63 cents to USD 23.51 an ounce.