The slump in the rupee has pushed up the domestic price of gold by 3.5% in the past one month, leading to a slowdown in festive season demand as consumers postpone buying decisions. On Tuesday, the domestic price of gold was hovering around Rs 31,850 per 10 gm.

Gold-prices rebounded by Rs-180 to Rs-30,700 per 10-grams at the bullion-market today on emergence of brisk buying by local-jewellers even as the metal weakened overseas. Silver also recaptured the Rs 39,000-mark per kg by gaining Rs-105 due to increased offtake by industrial-units and coin-makers. Traders said increased buying by local jewellers to meet festive season demand at domestic-spot-market led to the recovery in gold-prices.