Riding on a stunning relentless fourth consecutive session rally, silver prices soared to surpass the psychological milestone of Rs. 70,000 a kg mark at the domestic bullion bourses here on Friday on the back of strong speculative flows and aggressive cornering by seasonal traders.
Gold too continued its upward journey to attain new highs on consistent demand from stockists and jewellery makers amidst investment buying.
Buoyant international sentiment is the major factor in favour of local market as intense speculative activity has overtaken any kind of demand buying.
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The meteoric rise in silver clearly indicates the nature of speculation as it gained a hefty Rs. 23,600 or 50 per cent since the beginning of the current calendar year.
The precious metal continued its uninterrupted rally in international markets on mounting supportive factors such as accelerating inflationary pressure as well as spreading weakness in the dollar valuations including ongoing geopolitical uncertainty.
Silver ready (.999 fineness) galloped by Rs. 1,400 a kg to close at Rs. 70,810 from Thursday's closing level of Rs. 69,410.
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Standard gold (99.5 purity) firmed up by Rs. 65 per 10 grams to end at Rs. 21,825 from Rs. 21,760.
Pure gold (99.9 purity) also rose by Rs. 70 per 10 grams to finish at Rs. 21,930 as against Rs. 21,860 previously.