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Silver shines at new high, gold glitters too

In the national capital, silver zoomed Rs 800 to hit an all-time high of Rs 33,750 per kg, while gold jumped Rs 140, on frantic buying by stockists.

twitter-logoPTI | September 29, 2010 | Updated 16:31 IST

Silver on Wednesday zoomed Rs 800 to hit an all-time high of Rs 33,750 per kg, while gold jumped Rs 140 in the national capital, on frantic buying by stockists triggered by an overseas rally.

Amid a general firm trend, gold prices spurted Rs 140 to Rs 19,470 per ten grams.

Trading sentiment became extremely bullish following a sharp upsurge in precious metals in global markets, as the US dollar dropped to an eight-month low on speculations that the Federal Reserve may add to monetary easing.

While silver in global markets rose to a 30-year high at $22 an ounce, gold climbed to record levels of $1,313.45 an ounce.

Market experts said the upsurge in bullion prices was purely in tandem with a firm global trend and is hardly getting any support from the retail customers here.

"Precious metals are much co-related with the global trend, while physical buying is almost negligible due to off season," said All India Sarafa (Bullion) Market Association President Sheel, Chand Jain.

He said there was some buying by stockists and jewellery makers for the festival and marriage season, but not much enthusiasm was seen among retail customers due to the ongoing 'Shradh' period, which is considered inauspicious coupled with higher costs.

Shifting of investor funds from equity markets to bullion for quick gains was another supporting factor for the metals, Jain said.

At the local market here, silver ready shot up Rs 800 to Rs 33,750 per kg, a level never seen before. Silver weekly-based delivery also surged Rs 660 to Rs 33,170 per kg on speculative support.

Silver coins gained Rs 100 at Rs 35,400 for buying and Rs 35,500 for selling of 100 pieces.

Gold of 99.9 per cent and 99.5 per cent purity rallied Rs 140, each, to Rs 19,470 and Rs 19,370 per ten grams, respectively. Sovereigns traded higher by Rs 50 to Rs 15,350 per piece of eight grams.

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