Gold, silver rise further on global cues, local buying

Precious metals silver and gold extended gains on the bullion market on Monday on sustained buying support by stockists and jewellers for the ongoing marriage season, amid firm global trends.

While gold rose Rs 80 to Rs 20,400 per 10 grams, silver surged Rs 300 to Rs 43,600 per kg.

Market analysts said sentiments remained bullish, as gold climbed in global markets, following escalating tensions in Egypt fanned concern that unrest might spread to other parts of West Asia, increasing demand for the metal as safe haven.

Gold in global markets, which normally sets a price trend on the domestic front, gained 0.7 per cent to $1,346.27 an ounce and silver by 1.5 per cent to $28.40 an ounce, the highest since January 20.

Besides, shifting of funds from weakening equity to rising bullion also bolstered the market sentiments, they said.

On the domestic front, gold of 99.9 and 99.5 per cent purity rose Rs 80 each to Rs 20,400 and Rs 20,280 per 10 grams, respectively. The metal had gained Rs 360 in the previous session. Sovereign, remained stable at Rs 16,750 per piece of eight grams in restricted buying.

Silver ready rose Rs 300 to Rs 43,600 per kg, in continuation to a jump of Rs 1,600 on Saturday and weekly-based delivery by Rs 340 to Rs 43,340 per kg.

However, silver coin lacked necessary follow-up support at prevailing higher levels and lost Rs 200 to Rs 48,300 for buying and Rs 48,400 for selling of 100 pieces.