Precious Metals show signs of recovery in Mumbai Bullion Trade

Gold and Silver bounced back on the mumbai bullion market on fresh demand from stockists. The expectation of a uptrend has increased in view of the upcoming marriage season and late recovery of precious metals including gold and silver in the overseas markets. Industrial demand for silver continued to be strong. In the global market, gold prices fell in line with other commodities as oil and industrial metals as the collapse of mooted deal to rescue ailing US car-makers knocked investors' confidence.

Standard gold (99.5 purity) recovered by Rs 110 per ten grams to Rs 12,890 from Rs 12,780 yesterday.

Pure gold (99.9 purity) also rose by Rs 105 per ten grams to Rs 12,945 from Rs 12,840 previously.

Silver ready (.999 fineness) shot up by Rs 95 per kilo to Rs 17,160 from Rs 17,065.

But, gold recovered from lows as fears over the global economic outlook underpinned interest in the metal as a haven from risk, and the relative weakness of the dollar was supportive.

Spot gold was quoted at USD 817.00/819.10 an ounce, down from USD 818.35 an ounce previously. However, it was well off from an earlier low of USD 807.00 an ounce