Gold rallies further on firm buying, silver gains

The recent round of sell-off is losing momentum and buying is again picking up due to firm marriage season demand.

Gold prices rallied further at the bullion market here today, regaining the Rs 26,000 per 10 gm mark on sustained buying by stockists and traders amid higher marriage season off-take from consumers.

Silver gained modestly on speculative buying.

Standard gold of 99.5 per cent purity surged by Rs 340 to end at Rs 26,260 per 10 gm from Thursday's closing level of Rs 25,920.

Pure gold of 99.9 per cent purity rose by Rs 335 to conclude at Rs 26,395 per 10 grams from Rs 26,060 previously.

Silver ready (.999 fineness) added Rs 90 to finish at Rs 46,125 per kg from Rs 46,035 yesterday.

"The recent round of sell-off is losing momentum and buying is again picking up due to firm marriage season demand," traders said.

At the global front, gold strengthened to reach USD 1,400, boosted by a rise in physical demand for the yellow metal, mainly from Asia, though uncertainty still remained due to continued outflows from exchange-traded funds.

In Europe, spot gold was bid higher at USD 1,409.90 an ounce (about 28.35 grams) in early trade and silver was also bid up at $23.49 an ounce.