Millennium Post

Gold rebounds by Rs460 to cross Rs26k, silver rallies above `44k

Gold rebounded sharply to regain the key psychological Rs 26,000 per 10 gm mark at the domestic bullion market on Tuesday on the emergence of heavy demand from stockists and traders amid robust seasonal off-take driven by buoyant overseas cues. Silver too shot up to reclaim the important Rs 44,000 per kg level on the back of frantic speculative buying.

Standard gold of 99.5 per cent purity jumped by Rs 460 to conclude at Rs 26,360 per 10 gm from Monday's closing level of Rs 25,900. Pure gold of 99.9 per cent purity rallied by Rs 455 to close at Rs 26,505 from Rs 26,050. Silver ready (.999 fineness) galloped by Rs 1,145 to finish at Rs 44,115 per kg from the overnight closing level of Rs 42,970.

In the international markets gold declined on Tuesday, following its biggest jump in more than 10 months, as speculation that the US Federal Reserve Board might taper its bond-buying plans curbed demand for the metal as a protection of wealth. Gold fell 1.30 per cent to 1,376 dollar an ounce and silver by 2.62 per cent to 22.32 dollar an ounce. It had slid to 20.33 dollar on Monday, the lowest since September 2010.

US Federal Reserve Board (Fed) Chairman Ben S Bernanke will discuss America's economic outlook in a Congressional testimony and the Fed will publish minutes of its latest meeting on Wednesday.

Fed Bank of Chicago President Charles Evans said the US economy has improved 'quite a lot'. World gold prices had risen 2.5 per cent on Monday, the most since June 29, after Moodys Investors Service said that US policy makers must address the country's debt woes to avoid a credit-rating cut this year.
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