New Delhi, May 24: Gold prices recovered to trade at Rs 12,980 per 10 gram on the bullion market here today on emergence of buying by stockists and jewellery fabricators influenced by a firm global trend where crude prices continued to rule higher.

The gold, which had lost Rs 330 in last trading session, bounced back by Rs 110 at Rs 12,980 per 10 gram as the metal in overseas markets gained due to surging energy costs which boosted demand for a hedge against inflation.

The domestic markets which move in tandem with the global trend, also witnessed some buying by stockists despite the ongoing off marriage and festival season.

The threat of ever-increasing inflationary pressures can not be overlooked by investors, said market players.

A similar firming trend was noticed in silver after the silver futures shot up by Rs 350 to Rs 25,150 per kg. Silver Weekly-based delivery rose by Rs 750 at Rs 25,270 per kg on speculative support.

Silver coins also rose by Rs 100 at Rs 27,100 for buying and Rs 27,200 for selling of 100 pieces.

Standard gold and ornaments rose by Rs 110 each at Rs 12,980 and Rs 12,830 per 10 gram respectively. Sovereign was higher by Rs 50 at Rs 10,000 per piece of eight gram.