Gold gains Rs. 90, silver up by Rs. 400 on global cues

HYDERABAD:17/02/2009: Sri Vasundhara jewellery showroom worker arranging gold item following precious metal's price shooting up to touch a record at Rs 15,300 per ten grams on Tuesday in Hyderabad. Highest-ever prices may crimp demand for bullion from housewives and jewelers in the wedding season started last month, slowing a rally that’s pushed global gold prices up 30 percent in the past three months. Asian nations may more than halve to 250 tons from 720 tons in 2008, rising concerns of recession, deepening financial crisis and same time Indian rupee weakening the most within a month, cooled the demand for the imported metal by the world’s biggest consumer.. Photo:Mohammed_Yousuf

Extending its gains for the third session in a row, gold gained Rs. 90 to Rs. 28,280 per 10 grams in the national capital on Monday, on sustained buying by stockists and investors, driven by a firm global trend.

Silver also rallied for the fifth straight session and rose by Rs. 400 to Rs. 65,500 per kg on increased demand from speculators and industrial units.

Dealers said that trading sentiment remained firm after gold gained for a third day in London as concerns of slowing economic growth and Europe’s debt woes spurred demand for the precious metal as an alternate investment option.

Gold in global markets, which normally sets the price trend on the domestic front, rose by $10.75 to $1,893.63 an ounce in London. It had hit a record $1,913.50 on Aug23.

Scattered buying for the upcoming marriage season and shifting of funds from weak equity markets to bullion also bolstered the trading sentiment to some extent, they added.

On the domestic front, gold of 99.9 and 99.5 per cent purity rose by Rs. 90 each to Rs. 28,280 and Rs. 28,140 per 10 grams, respectively. The metal had gained Rs. 660 in the last two trading sessions.

Sovereign followed suit and moved up by Rs. 100 to Rs. 22,600 per piece of eight grams.

In line with a general firm trend, silver ready gained Rs. 400 to touch Rs. 65,500 per kg. It had gained Rs. 2,600 in the previous four sessions.

Silver weekly-based delivery rose by Rs. 580 to Rs. 66,415 per kg after gaining Rs. 4,870 in the previous four sessions.

However, silver coins lacked necessary buying support at existing higher levels and dipped by Rs. 1,000 to Rs. 72,000 for buying and Rs. 73,000 for selling of 100 pieces.