Gold has recovered from an over six-week low by rising Rs 80 to close at Rs 27,030 per 10 grams in the national capital. This happened due to the emergence of buying by jewellers at lower levels, amid a positive global trend. Traders said that the revival of buying by jewellers and retailers at the lower levels and a better trend in the global markets, as the dollar has stabilised has mainly contributed to the recovery in gold prices.

Gold in Singapore is what normally determines the price trend on the domestic front, and it rose by 0.1 percent to $1,173.24 an ounce and silver by 0.1 per cent to $16.11 an ounce. In Delhi, gold of 99.9 and 99.5 per cent purity has rose by Rs 80 respectivlely to Rs 27,030 and Rs 26,880 per 10 grams. Gold has lost Rs 390 in last three days.

"In the event of a US rate hike, global gold prices could drop and range between $900/oz to $1,050/oz... they will possibly settle at around $1,000/oz. As such, the domestic price of gold may decline and range between Rs 20,500/10gm to Rs 24,000/10gm," India Ratings and Research said in a report. India Ratings and Research said, that gold prices can rise from the current levels to Rs 29,500-Rs 30,500 per 10 grams if US continues to delay the interest rate hike and the major economies such as Japan and Eurozone continue with their unconventional monetary policy.

Market analysts said that the speculators has enlarged their positions on the back of a global trend and supported the upside in gold prices at futures trade. India is one of the biggest importers of Gold. The people of India are obsessed with the buying of Gold. The lower price was a boon to the buyers. Gold has become an essential commodity for the people.

By Premji