Gold recovers on global cues, silver surges

Gold prices recovered at the bullion market in Mumbai on Wednesday due to fresh stockist-buying, supported by moderate jewellery offtake amid firming European cues.

Silver prices rallied further on hectic investment buying and rising industrial demand.

In Europe, precious metals rose on rising unrest in Middle-East and North Africa, but gains were limited on widely expected tightening of monetary policy.

In the domestic market, standard gold (99.5 purity) rose by Rs 70 per 10 grams to closed at Rs 20,695 from Tuesday's closing level of Rs 20,625.

Pure gold (99.9 purity) went up by Rs 65 per 10 grams to finish at Rs 20,795 per 10 grams as against Rs 20,730 previously. Silver ready (.999 fineness) jumped by Rs 400 per kg to end at Rs 56,410 from yesterday's closing level of Rs 56,010.

In Europe, spot gold bid was at $1,418.90 an ounce in early trade as against to $1,415.95 late in New York on Tuesday. Silver was bid at USD 37.29 an ounce as against $37.07.