Silver touches Rs 48,700/kg on global cues

PTI New Delhi | Updated on February 19, 2011

Silver prices hit a new peak today and rose by Rs 1,250 to Rs 48,700 per kg on frantic buying by jewellers and industrial units to meet the ongoing marriage season demand. Gold also extended gains for the fifth straight session and rose by Rs 25 to Rs 20,745 per 10 grams.

Trading sentiment for both the precious metals turned bullish after silver hit a 30-year high and gold climbed to a one-month peak in the global markets as mounting unrest in West Asia spurred the demand for the metals as alternative investment.

Market analysts said buying of gold by retail customers on expectations of a further rise in prices in the coming days partly supported the uptrend.

Meanwhile, a World Gold Council (WGC) report said gold imports are likely to rise this year on the back of robust demand coupled with high economic growth.

“Gold imports were 918 tonnes in 2010. It is too early to estimate the exact imports. But there is every reason for us to believe that it is going to be higher than last year as demand is good,” the WGC Managing Director (India and Middle East), Mr Ajay Mitra, said.

Demand for gold in India, the world’s largest consumer of the yellow metal, was close to 100 tonnes in January 2011 against 85 tonnes in the year-ago period, he said, adding that this was indicative of the momentum continuing.

In the national capital, silver remained at the centre of brisk buying in line with a firming global trend and recorded a handsome gain of Rs 1,250 to Rs 48,700 per kg. The metal surged by Rs 950 on Friday.

Similarly, the silver weekly-based delivery jumped up by Rs 1,170 to Rs 48,545 per kg in continuation of a rise of Rs 1,060 in the previous session. However, silver coins held steady at the previous levels of Rs 56,000 for buying and Rs 56,100 for selling of 100 pieces.

Gold of 99.9 and 99.5 per cent purity maintained their upward march for the fifth day in a row and gained Rs 25 each to Rs 20,745 and Rs 20,635 per 10 grams, respectively. Sovereign remained stable at Rs 16,950 per piece of eight grams.

Published on February 19, 2011

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