Bullion: Gold prices rebounded smartly after two-weeks of declines on emergence of fresh buying from jewellery traders and retail consumers supported by buoyant overseas sentiments.
Traders and local investors, who were on the sidelines expecting an import duty cut on the yellow metal in the maiden Union Budget of the Modi Government, went on a buying spree to restock the precious metal, triggering a rally, a bullion trader said. Bullish global cues in the midst of renewed Europe debt concerns further bolstered the domestic sentiment. After trading lacklustre for past few sessions and investors caution, gold suddenly regained its glitter on Budget-day, retracing the key Rs 28,000 per 10 grams mark amid supply fear.
Industrial metal, silver, too witnessed a sharp rally moving in line with the general trend and re-visited the psychologically important Rs 46,000 per kg level following frantic speculative off take. On the global front, the shiny metal maintained its strong rallying momentum bolstered by safe-haven demand following fresh concerns over debt defaults at Portugal's banking sector and financial stability amid sillover fears in the Euro zone periphery. However, better-than-expected US macro data as well as solid jobless claims numbers capped the gains.
Gold for August delivery settled sharply higher at USD 1,337.40 an ounce against last weekend level of USD 1,320.60 on the Comex division of the NYMEX. Silver for July contract firmed up to USD 21.46 an ounce from USD 21.14 previously.
