Gold prices advance on improved demand

New Delhi-India (Jan 5)  Gold prices advanced further at the domestic bullion market on Monday due to sustained buying by stockists and retailers. Elsewhere, silver surged ahead and closed above the Rs 37,000-mark on the back of heavy industrial offtake.

Standard gold (99.5 purity) moved up by Rs 40 to settle at Rs 26,740 per 10 grams from last Saturday's closing level of Rs 26,700. Pure gold (99.9 purity) also gained by a similar margin to finish at Rs 26,890 per 10 grams as against Rs 26,850 previously.

Silver (.999 fineness) rose by Rs 380 to conclude at Rs 37,090 per kg compared to Rs 36,710 last weekend.

Globally, the yellow metal climbed on safe-haven demand amid lingering fears of a global economic slowdown and political uncertainty in Greece despite strong dollar sentiment. Spot gold was substantially higher at US $1,189 an ounce during morning hours at European market after hitting a daily peak of US $1,197.60.

Source: DNA.india