Gold Snaps 2-Day Falling Streak, Surges by Rs 250

New Delhi: After falling for two straight days, gold on Saturday staged a comeback to close Rs 250 higher at Rs 28,350 per 10 grams at the bullion market as jewellers made fresh buying at prevailing levels to meet wedding season demand amidst a firming global trend.

Silver followed suit and recovered by Rs 800 to Rs 38,350 per kg on increased offtake by industrial units and coin makers.

Traders said besides wedding season buying by jewellers, a firm global trend amid the US economy expanding at a slower pace than forecast in the fourth quarter reignited demand for the precious metal as a safe haven. (Read: US 2014 economic growth fastest in 4 years)

Gold in New York, which normally determines trend on the domestic front, rose 1.99 per cent to $1,283.10 an ounce, the biggest advance since January 15. Silver also rose 2.6 per cent to $17.20 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity shot up by Rs 250 each to Rs 28,350 and Rs 28,150 per 10 grams respectively. It had lost Rs 320 in last two days.

Sovereign recovered by Rs 100 to Rs 24,000 per piece of 8 grams.

In a similar fashion, silver ready rebounded by Rs 800 to Rs 38,350 per kg and weekly-based delivery by Rs 860 to Rs 38,135 per kg.

On the other hand, silver coins traded at last level of Rs 63,000 for buying and Rs 64,000 for selling of 100 pieces.