Zee Media Bureau
New Delhi: Gold price recovered by Rs 119 in futures trade early Saturday as speculators enlarged their positions, getting support from rising physical buying in spot markets.
However, weak trend in overseas market capped the upside.
At the Multi Commodity Exchange (MCX), gold for delivery in June, moved higher by Rs 119 to Rs 16,962 per ten grams as against its previous close of Rs 26,636.
Similarly, silver for delivery in July recovered by Rs 202 to Rs 45,264 per kg compared to Rs 44,491 on Friday.
Meanwhile, gold prices in overseas markets, which normally set price trend on the domestic front, fell 2.2 percent to a two-week low due to strong dollar, rising stock markets and drop in US weekly jobless claims to their lowest level since 2008.
In New York, gold for June delivery fell by USD 32, or 2.2 percent, to settle at USD 1,436.60 an ounce on the Comex division of the NYMEX
The dollar hit a 4-1/2 year high against the yen on Friday.
On Thursday, US data showed that new claims for jobless benefits dropped to the lowest level in more than five years, ticking down 4,000 to 323,000.
Gold prices sank to around USD 1,321 on April 16, the lowest in more than two years, in a sell-off that surprised ardent gold investors and bulls.
With Agency Inputs
First Published: Saturday, May 11, 2013, 10:32