Gold and silver prices bounced back in the domestic futures market on Tuesday, recovering from the weakness seen in the previous trading sessions. The rebound was attributed to value buying following the recent decline in precious-metal prices.
Gold futures on the MCX for October 5 delivery rose more than Rs 1,300 during the session and touched a high of Rs 1,54,125 per 10 grams. The contract had settled at Rs 1,52,818 in the previous session.
Silver also recorded strong gains, with the December 4 futures contract rising by over Rs 2,700 to hit Rs 2,41,724 per kilogram. It had closed at Rs 2,39,016 on the MCX in the previous session.
The early rally, however, lost momentum as traders booked profits at higher levels. At the latest count, MCX Silver was quoted at Rs 2,39,246 per kg, marking a gain of Rs 230, or 0.1 per cent. Gold futures were trading at Rs 1,53,261 per 10 grams, up Rs 443, or 0.29 per cent.
The recovery was also visible in the domestic retail gold market, where prices increased across purity levels. Data from bullion.co.in showed that 24-karat gold was priced at Rs 1,53,510 per 10 grams on September 8, while the rate for 22-karat gold stood at Rs 1,40,718 per 10 grams.
The latest movement indicates renewed buying interest in precious metals after the recent correction, although profit booking has limited the gains in the futures market.
