World gold ends 10-day loss; Indian rate rebounds

World gold prices on Thursday rose for the first time in 11 days, ending the longest losing streak in almost two decades, as the US dollar weakened and investors speculated that recent declines have been overdone. Gold advanced 0.6 per cent to $1,101.10.  Prices reached a five-year low earlier this week. Silver also rose 0.6 <g data-gr-id="33">per cent</g> to $14.82 an ounce. The decline in bullion increased physical demand from China and India. 

Gold has fallen almost every day this month, bringing losses to 7 <g data-gr-id="34">per cent</g> for 2015, as the Federal Reserve moves closer to raising interest rates and the dollar strengthens. Higher rates diminish the appeal of gold.

In India too, snapping three-day losses, gold staged a resounding comeback on Thursday to rise by Rs 215 and reclaimed the Rs 25,000-mark at the bullion hub here. The reversal was fuelled by a mild rebound in overseas markets where gold snapped a 10-day losing streak despite <g data-gr-id="36">softer</g> tone in the US dollar.

The metal witnessed a near-term <g data-gr-id="31">rout</g> across the global commodity markets following recent developments in Greece and Iranian nuclear negotiations amid expectations that the US Fed will hike interest rates at its next policy meet.

Value-buying from jewellery stockists and individual investors on attractive lower levels mainly helped gold prices to rebound in domestic trade, a bullion trader said. Standard gold (99.5 purity) jumped by Rs 215 to conclude at Rs 25,035 per 10 gm from Wednesday’s closing level of Rs 24,820.

Pure gold (99.9 purity) also rallied by a similar margin to finish at Rs 25,185 per 10 grams from Rs 24,970. Elsewhere, silver also regained some lost ground on the back of speculative buyout. Silver (.999 fineness) rose by Rs 200 to end at Rs 34,835 per kg as compared to Rs 34,635 on Wednesday.