Precious metals recover smartly on global cues

[sajiv]

Both the precious metals, gold and silver recovered smartly on the bullion market here today due to fresh stockists buying in view of prices firming up in overseas markets.

Gold firmed in Europe supported by a weaker dollar and rising oil prices, though it pared gains as the euro slipped from highs against the U.S. Currency and equities.

Trading is expected to be muted ahead of the interest rate announcement of the European Central Bank on Thursday. The ECB is widely expected to cut rates by 50 basis points.

Spot gold was at USD 824.20/825.60 an ounce from USD 821.05 late in New York. It touched a high of USD 828.65 earlier in the session.

Spot silver was at USD 10.75/10.83 an ounce as against USD 10.72 an ounce.

Turning to the domestic market, standard gold (99.5 purity) firmed up by Rs 65 per ten grams to Rs 13,055 from yesterday's closing level of Rs 12,990.

Pure gold (99.9 purity) rose to Rs 13,115 per ten gram as against Rs 13,065 previously.

Silver ready (.999 fineness) also shot up by Rs 170 per kilo to Rs 18,235 from Rs 18,065.