Gold, silver rebound on strong festive demand

New Delhi, Oct 3: Gold and Silver prices rebounded on Thursday due to fresh demand from stockists and retail consumers for the ongoing festival.

The precious metal rose Rs 200 to revisit the all-time high level of Rs 78,300 per 10 grams, according to the All India Sarafa Association.

It had closed at Rs 78,100 per 10 grams on Tuesday.

Silver also jumped by Rs 665 to Rs 93,165 per kg from Rs 92,500 per kg in the previous close.

Additionally, gold of 99.5 per cent purity climbed by Rs 200 to reclaim its all-time high of Rs 77,900 per 10 grams. The metal had finished at Rs 77,700 per 10 grams on Tuesday.

The commodity markets were closed on Wednesday on account of Mahatma Gandhi Jayanti.

Traders said the sentiment turned better on rising demand at the beginning of 'Navratri', an auspicious week in Hindu mythology for purchasing new things particularly precious metals.

"A possible increase in jewellery demand amid peak festival season and a weak Indian rupee also aided the commodity in the domestic market," Hareesh V, Head of Commodities at Geojit Financial Services, said.

Meanwhile, in futures trade, gold contracts for December delivery declined Rs 440 or 0.58 per cent to Rs 75,950 per 10 grams on the Multi Commodity Exchange (MCX).

However, silver climbed Rs 225 or 0.25 per cent to trade at Rs 91,600 per kg on the MCX.

In the Asian trading hours, Comex gold is trading 0.17 per cent lower at USD 2,665.20 per ounce.

"Gold traded with a modest loss on Thursday, as an uptick in the US dollar and Treasury yield weighed down on precious metals," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

Silver was quoted 0.36 per cent lower at USD 31.81 per ounce globally.

"For bullion market mood remained downbeat on Thursday as US equities traded in the red on Wednesday, amid an escalation in the Middle East suggests that Israel is likely preparing for a response to strikes by Iran which indicates that precious metal prices could still find supports at lower levels.

"Further, investors to track US jobs data, including jobless claims, to release later on Thursday which could provide some direction for the yellow metal rates," Maneesh Sharma, AVP - Commodities & Currencies at Anand Rathi Shares and Stock Brokers, said.

Silver is still expected to outperform gold in the medium-term perspective amid optimism surrounding aggressive China stimulus measures gaining further support at lower levels from the base metals complex, Sharma added.