Mumbai, Jan 3: Gold prices rebounded smartly at the domestic bullion market here today on renewed demand from stockists and firm demand from jewelers fueled by the rally in overseas markets.
Silver also surged on heavy speculative buildup amidst strong industrial demand.
In Europe, gold rose on a weak dollar amidst good buying after prices hit a nearly six-month low last week on the back of mounting tension between Iran and US on possible disruption of oil supplies.
Standard gold of 99.5 per cent purity shot up by Rs 290 to end at Rs 27,465 per 10 grams from Monday's close of Rs 27,175.
Pure gold of 99.9 per cent purity also climbed by Rs 295 to close at Rs 27,595 per 10 grams from Rs 27,300.
Silver ready (.999 fineness) zoomed by Rs 1,030 per kg to finish at Rs 52,130 from Rs 51,100 yesterday.
In London, spot gold bid up at USD 1,588.80 an ounce in early trade and silver was bid higher at USD 28.59 an ounce.