Gold prices recover in India, globally amid Chinese jitters

Standard gold touched INR 26,000 per 10g, a level not seen since July 17, but prices slipped on profit booking by stockists. Gold closed at INR 25,900 per 10g, a rise of INR 380 from Tuesday.

Gold prices in India rose to nearly a month's high early on Wednesday before profit taking pulled down the yellow metal from the day’s peak. Still, domestic gold prices are up by ~4% or INR 900 per 10 grams in two days.

Standard gold touched INR 26,000 per 10g, a level not seen since July 17, but prices slipped on profit booking by stockists. Gold closed at INR 25,900 per 10g, a rise of INR 380 from Tuesday.

Meanwhile, silver prices have jumped by 5% in two days and closed at INR 36,200 a kilo in Mumbai's Zaveri Bazaar.

Beijing’s devaluation of the yuan on Tuesday has sparked further worries about the health of the world’s second-largest economy.

Gold futures traded in New York ended sharply higher on Wednesday, registering a fifth straight gain in the precious yellow metal. Gold has risen in the past few days amid typical safe haven appeal among global investors, as stocks have taken a beating in the wake of the China currency devaluation shock. Gold has also benefited from weakness in the US dollar.

Gold has advanced by nearly US$30 since Friday, when it had closed at US$1,094.10 an ounce. On Wednesday, New York gold futures for December delivery gained US$15.90, or 1.4%, to trade at US$1,123.60 an ounce. Meanwhile, September silver gained about 20 cents, or 1.3%, at US$15.48 an ounce