Gold makes modest recovery, silver eases

Gold prices recovered modestly after a two-day slide at the bullion market here on Saturday on the back of renewed demand from local retailers and investors amid good jewellery offtake despite bearish global sentiment.

In contrast, silver continued to drift on subdued speculative buying coupled with reduced industrial demand.

Standard gold of 99.5 per cent purity rose by Rs 125 to end at Rs 28,005 per 10 grams from Friday’s closing level of Rs 27,880.

Pure gold of 99.9 per cent purity went up by a similar margin of Rs 125 to finish at Rs 28,130 per 10 grams as against Rs 28,005 yesterday.

However, silver ready (.999 fineness) moved down by Rs 60 per kg to settled at Rs 56,100 from overnight close of Rs 56,160.

In overseas market, gold declined on strong dollar valuation amid fresh concerns emerging out of the Greek debt bailout deal.

Gold for April delivery retreated $15.90 to end at $1,725.30 an ounce on the Comex division of the NYMEX late yesterday.

Silver for March contract lost 31 cents to close at $33.60 an ounce.