09 June 2011

Silver rises to Rs 55,100 and Gold remains weak

A divergent trend developed in the bullion market Thursday as silver recovered by Rs 400 to Rs 55,100 per kg on fresh buying by stockists amid a firming global trend, while gold fell further by Rs 25 to Rs 22,655 per 10 gram on sluggish demand at existing high levels.

Silver coins followed suit and shot up by Rs 1,000 to Rs 61,000 for buying and Rs 62,000 for selling of 100 pieces.

Buying activity in silver gathered momentum as the metal prices rose in global markets amid fresh buying by stockists and jewellers for the marriage season, traders said.

On the other hand, sluggish local demand and weak trend in overseas market led to the decline in the yellow metal''s prices, they added.

Gold in global markets, which normally sets a price trend on the domestic front, declined by USD 1.50 to USD 1536.10 an ounce, while silver gained 0.35 per cent to USD 36.93 an ounce.

On the domestic front, silver ready recovered by Rs 400 to Rs 55,100 per kg and weekly-based delivery by Rs 320 to Rs 54,970 per kg.

On the other hand, the gold of 99.9 and 99.5 per cent purity remained weak for the second straight day and shed another Rs 25 each to Rs 22,655 and Rs 22,535 per 10 grams, respectively.

The yellow metal had lost Rs 130 in yesterday''s trade.

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