Bullion futures rebound on weak dollar

Gold and silver prices rebounded sharply in futures trade, with the white metal climbing nearly 4 per cent or Rs 9,665 to Rs 2.62 lakh per kg and the yellow metal edging higher to Rs 1.58 lakh per 10 grams on firm global trends.

Analysts said a weak US dollar and renewed geopolitical tensions between the US and Iran lifted the demand for safe-haven assets. Silver for March delivery surged by Rs 9,665, or 3.83 per cent, to Rs 2,62,213 per kg.

The white metal had slumped by Rs 10,072, or nearly 4 per cent, to settle at Rs 2,52,548 per kg on Tuesday.Gold futures also witnessed value buying with the April contract rising Rs 1,397, or 0.89 per cent, to Rs 1,58,200 per 10 grams.

In the previous session, the yellow metal had finished lower at Rs 1,56,803 per 10 grams.”MCX gold rose nearly 1 per cent, reclaiming levels above Rs 1.58 lakh per 10 grams, while silver outperformed the yellow metal,” Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.