Gold, silver consolidate gains on global momentum

Gold and silver rallied further in Mumbai on Saturday on sustained speculative and investment buying sparked by rising global markets.

Standard gold (99.5 purity) jumped by Rs 860 per 10 grams to finish at Rs 27,665 from Friday's closing level of Rs 26,805.

Pure gold (99.9 purity) shot up by a similar margin of Rs 860 per 10 grams to close at Rs 27,790 from Friday's closing level of Rs 26,930.

Silver ready (.999 fineness) climbed by Rs 955 per kg to end at Rs 64,440 from Rs 63,485 previously.

Gold prices rose sharply by Rs 950 per 10gram, the second biggest one-day gain, to regain the Rs 28,000 level in NewDelhi on Saturday on heavy buying, driven by a recovery move in global markets.

Snapping its three-day losing streak, goldprices jumped by Rs 950 to Rs 28,090 per ten gram. This is the second biggestsingle-day gain after August 19 when gold prices had skyrocketed by Rs 1,310per 10 gram.

Silver also staged a strong come back byrising Rs 2,100 to Rs 64,600 per kg. Silver had lost Rs 3,800 while gold haddeclined by Rs 1,400 in the previous three trading sessions.

At the global front, gold continued its surge over positive views on US economy at the Federal Reserve meet, which, however, sidelined discussion on further quantitative easing measures.

In New York, gold for December delivery gained $34.10 to $1,797.30 an ounce on the Comex Division of the NYMEX.

September silver rose by 21 cents to $40.95 an ounce.