Gold rebounds Rs 115 on seasonal demand

Gold prices rebounded by Rs 115 to trade Rs 28,280 per ten grams at the bullion market here today on buying by stockists amid firming global trend.

Silver, too, gained Rs 50 to trade at Rs 56,200 per kg on increased offtake by jewellers and industrial users.

Buying activity picked up after the dollar-priced gold climbed in global markets, as a pledge by China to help resolve Europe's debt crisis weakened dollar against euro.

Gold in global markets, which normally set price trend on the domestic front, rose 0.3% to 1,725.68 dollar an ounce and silver by 0.4% to 33.71 dollar an ounce in Singapore.

In additions, buying by retail customers and jewellers for the ongoing marriage season also supported the uptrend.

Gold of 99.9 and 99.5% purity moved up by Rs 115 each to Rs 28,280 and Rs 28,140 per ten grams respectively. Sovereign remained steady at Rs 23,400 per piece of eight gram.

In a similar fashion, silver ready rose by Rs 50 to Rs 56,200 per kg and weekly-based delivery by Rs 145 to Rs 56,655 per kg. Silver coins gained Rs 1,000 to Rs 67,000 for buying and Rs 68,000 for selling of 100 pieces.