Gold prices recovered by Rs 45 at Rs 12,905 per 10 gram in the bullion market here on Monday on buying support from stockists and jewellery fabricators at lower levels, ahead of the coming festival season. While the standard gold and ornaments rose by Rs 45 at Rs 12,905 and Rs 12,755 per 10 gram respectively, the sovereign held steady at Rs 10,625 per piece of eight gram.

In a similar fashion, silver ready shot up by Rs 100 at Rs 24,600 per kilo and weekly-based delivery firmed by Rs 50 at Rs 24,500 per kilo. Silver coins ruled flat at Rs 28,000 for buying and Rs 28,100 for selling of 100 pieces.

Marketmen said buying activity picked up after reports of gold gaining in London and hints of it strengthening further as the dollar is weakening against its major rival currencies, mainly euro. A weaker dollar buoys demand for the precious metal as an alternative investment. Gold for immediate delivery rose 10 cents to $929.95 an ounce at London Metal Exchange.