Gold, silver extend gains on seasonal buying

Mumbai-India (Oct 17)  Gold continued its rising streak for the third day and rose by Rs 20 to Rs 27,860 per ten grams in New Delhi on Friday on festive season demand from jewellers and retailers amid a firming global trend.

Silver also advanced by Rs 200 to Rs 39,100 per kg on increased offtake by industrial units and coin makers.

Bullion merchants attributed the persistent rise in prices of the precious metal to sustained buying by jewelers and retailers, triggered by ongoing festive season.

Besides, a firming global trend amid speculation that a global slowdown led by Europe may delay the onset of higher US borrowing costs, influenced gold prices.

Gold in Singapore, which normally sets price trend on the domestic front, traded higher at $1,239.49 an ounce as against yesterday's $1,238.81.

In Delhi, gold of 99.9 and 99.5 per cent purity was up by Rs 20 each to Rs 27,860 and Rs 27,660 per ten grams, respectively. It had gained Rs 260 in the previous two sessions.

Sovereign, however, held steady at Rs 24,300 per piece of eight grams in limited deals.

In line with a general firming trend, silver ready rose further by Rs 200 to Rs 39,100 per kg while weekly-based delivery declined by Rs 30 to Rs 38,840 per kg.

On the other hand, silver coins maintained a steady trend at Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.

Source: Rediff