Snapping its three-day losing run, gold prices recovered from over a four-month low by surging Rs 175 to Rs 25,700 at the bullion market on Tuesday, taking positive cues from global markets amid fresh buying by jewellers.
Silver followed suit and traded higher by Rs 200 at Rs 34,200 per kg on increased offtake by industrial units and coin makers.
Traders attributed recovery in precious metal prices to a firm trend overseas as investors awaited speech from Federal Reserve Chair Janet Yellen and the November jobs report later this week for more clues on when the central bank will raise rates.
Globally, gold climbed 0.9 per cent to $1,074.76 an ounce in Singapore.
On Friday, the metal had dropped to $1,052.83, its lowest level since February 2010.
In London, gold recovered 0.52 per cent to trade at $1,070 an ounce in early trade on Tuesday.
Besides, emergence of buying by jewellers and retailers to meet ongoing wedding season demand supported the upside, they said.
In the national capital, gold of 99.9 and 99.5 per cent purity climbed Rs 175 each to Rs 25,700 and Rs 25,550 per 10 grams, respectively. The precious metal had lost Rs 295 in the previous three days.
The sovereign, however, remained steady at Rs 22,200 per piece of eight gram in limited deals.
In a similar fashion, silver ready recovered by Rs 200 to Rs 34,200 per kg and weekly-based delivery by Rs 85 to Rs 33,665 per kg.
Meanwhile, the government on Monday slashed import tariff value on gold and silver to $344 per 10 grams and $461 per kg, respectively.
For the last fortnight, the tariff value on imported gold was fixed at $354 per 10 grams and on silver it was $470 per kg.
The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing.
It is usually revised on a fortnightly basis.
On the other hand, silver coins, continued to trade at previous level of Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.
Image: Gold pigs are displayed for customers at a jewellery shop at the Shinsegae department store in Seoul. Photograph: Jo Yong-Hak/Reuters
