Silver advanced by Rs 2,600 to Rs 58,500 per kg, while gold added Rs 40 to Rs 22,820 per 10 grams today, continuing their upward rally for the third straight session, on aggressive buying by speculators and investors on rising global trend.

In the previous two sessions, silver gained Rs 2,700, while gold rose by Rs 200.

Trading sentiment remained bullish after silver rallied in the global markets and gold climbed as Europe’s deepening debt crisis increased investors’ demand for precious metals as a protection of wealth.

In the global markets, which normally set the price trend at the domestic front, silver rose 1.8 per cent to $38.59 an ounce, the highest level since May 11. Gold also climbed 0.4 per cent to $1,530.97 an ounce.

Besides, pick-up in seasonal demand further bolstered the trading sentiment.

At the domestic front, both silver ready and weekly-based delivery surged by Rs 2,600 to close at Rs 58,500 per kg. Silver coins followed suit and spurted by Rs 2,000 to Rs 65,000 for buying and Rs 66,000 for selling of 100 pieces.

In a similar fashion, gold of 99.9 and 99.5 per cent purity moved up by Rs 40 each to Rs 22,820 and Rs 22,700 per 10 grams, respectively. However, sovereigns continued to be asked around the previous level of Rs 18,650 per piece of eight grams in restricted buying.

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Published on May 26, 2011