Gold recovers on higher NY demand

Gold prices recovered on the bullion market here today on renewed demand from stockists on the back of higher New York advices. Silver also inched up on mild industrial demand.

Standard gold (99.5 purity) firmed up by Rs 60 per ten grams to Rs 8,850 from Rs 8,790 yesterday. Pure gold (99.9 purity) also moved up to Rs 8,900 from Rs 8,840.

A falling dollar and rising equities gave back some of the losses made by gold futures in New York on Thursday, with the gain spurred by a surprise Fed discount rate cut.

December gold rose by USD 8.80 to USD 666.80 an ounce on the Comex division of the New York Mercantile Exchange. Comex September silver rose 30.5 cents to USD 11.80 an ounce.

After the Fed’s rate cut announcement, the “initial euphoria” that led to a surge in equities and gold gradually subsided and gave way to more moderate gains, traders said. In local markets, silver ready (.999 fineness) looked up to Rs 16,960 from Rs 16,945 yesterday.

Source: ET