Gold rebounds `1,300 after 3-days; silver slides `2,000

Snapping the three-day falling streak, gold prices rebounded by `1,300 to `1.46 lakh per 10 grams in the national capital on Monday on value buying by traders.
According to the All India Sarafa Association, gold of 99.9 per cent purity increased by `1,300 to `1,46,600 per 10 grams (inclusive of all taxes) from the previous close of 
`1,45,300 per 10 grams on Thursday. Bullion markets were closed on Friday for Muharram. However, silver fell for the fourth consecutive session, declining by `2,000 to `2,24,000 per kilogram (inclusive of all taxes). In the previous session, the white metal had settled at 
`2,26,000 per kg.

Analysts attributed the recovery in gold to bargain buying after the recent correction, while silver continued to mirror weakness in the overseas markets.
“Silver prices faced downward pressure in the domestic market on Monday amid ongoing global uncertainties,” said Gaurav Garg, Research Analyst at Lemonn Markets Desk.
In the international markets, spot gold fell by $54.14, or 1.32 per cent, to $4,035.12 per ounce, and silver declined nearly 3 per cent to $57.62 per ounce.

“Crude oil prices in the global markets and US dollar index have edged higher on re-escalation of the US-Iran tensions during the weekend,” Praveen Singh, Head of Commodities & Currencies at Mirae Asset Sharekhan, said.
Meanwhile, Washington and Tehran later agreed to halt hostilities after renewed military action threatened the fragile 60-day understanding; investors largely remained cautious, keeping pressure on bullion.

Market participants are awaiting the US economic data, particularly the nonfarm payrolls report and ISM Manufacturing PMI for fresh clues on the strength of the American economy and clues for the Federal Reserve’s monetary policy path, Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.