India spot gold closes marginally higher amid recovery in domestic demand

MUMBAI (25 July) - Indian spot gold edged higher on Friday, tracking global cues and supported by a revival in domestic demand.

At 2.30 p.m. in London, gold was trading at $924, after heavy losses so far this week on bargain hunting, as the dollar lost some strength and as oil prices recovered.

Gold has been volatile this week, hitting a high of $976 per ounce on Tuesday but later falling to a week low of $915.80 on Thursday.

"Domestic demand has improved tracking the fall in prices in the last two days," said Suresh Hundia, president of the Bombay Bullion Association.

The precious metal trades counter to the dollar as it is seen as an alternative asset and in line with oil prices as investors hedge against inflation.

In Mumbai, gold of 0.995 purity closed 130 rupees higher at 12,760 rupees per 10 grams and gold of 0.999 purity closed up 130 rupees at 12,825 rupees per 10 grams.

Silver of 0.999 purity closed 205 rupees higher at 25,040 rupees per kg.

India is the world's buyer of gold.