Silver hits new high at Rs. 57, 500 on global cues

Silver zoomed to a new high on Tuesday by rising Rs. 500 to Rs. 57,500 per kg on hectic buying by stockists and jewellers for the ongoing ‘Navratra’ festival, amid a firming global trend. Gold, also, gained Rs. 30 to Rs. 21,150 per 10 grams.

Shifting of funds from weakening equities to the firming bullion market further fuelled the uptrend in precious metals.

Trading sentiments for the white metal remained bullish as it reached a 31-year peak in global markets on rising oil and grain prices fanning concerns that inflation is accelerating, supporting demand for the precious metal as an alternative investment.

Silver climbed by 0.6 per cent to $ 38.78 an ounce, the highest level since 1980 and gold by 0.4 per cent to $1,439.10 an ounce.

On the domestic front, silver shot up by Rs. 500 to Rs. 57,500 per kg and weekly-based delivery by Rs. 525 to Rs. 57,100 per kg. Silver coins followed suit and spurted by Rs. 500 to a new peak of Rs. 63,000 for buying and Rs. 63,500 for selling of 100 pieces.

Similarly, gold of 99.9 and 99.5 per cent purity remained in demand and advanced by Rs. 30 each to Rs. 21,150 and Rs. 21,030 per 10 grams, respectively. Sovereigns, too, held steady at Rs. 17,500 per piece of eight grams.