Gold rebounds on jewellers' buying, silver jumps Rs 280/kg

New Delhi: Gold recovered by Rs 100 to Rs 31,250 per 10 grams today on fresh buying by jewellers at the domestic spot market to meet retailers' demand even as the metal weakened overseas.

Silver also rebounded by Rs 280 to Rs 44,700 per kg due to increased off-take by industrial units and coin makers.

Traders said fresh buying by jewellers to meet festive season demand from retailers led to the recovery in the precious metal prices.

They said, however, a weak trend overseas capped the gain.

Globally, gold fell 0.08 per cent to USD 1,320.50 an ounce in New York yesterday after Fed chair Janet Yellen in an address to central bankers in Wyoming said the case for an increase in interest rate has strengthened.

In the national capital, gold of 99.9 percent and 99.5 percent purity went up Rs 100 each to Rs 31,250 and Rs 31,100 per 10 grams, respectively. The metal had lost Rs 100 yesterday.

Sovereign, however, remained flat at Rs 24,300 per piece of eight grams in limited deals.

Tracking gold, silver ready recovered Rs 280 to Rs 44,700 per kg and weekly-based delivery by Rs 115 to Rs 43,975 per kg.

On the other hand, silver coins continued to be traded at the previous level of Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.