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| Silver surges to one-year high |
| Press Trust Of India / New Delhi Oct 08, 2009, 00:14 IST |
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Gold also shines by Rs 160 due to ongoing festival demand.
Gold prices on Wednesday spurted by Rs 160 per 10 gm on the bullion market here, while silver touched one-year high of Rs 27,000 a kg on strong global cues as dollar continued to fall against major currencies, boosting the appeal of the metals as safer investment option.
Marketmen said trading sentiment remained bullish in the domestic market as in the global markets, which sets the trend back home, gold touched an all-time record of $1,047.65 an ounce.
They added that higher local demand due to the ongoing festive and marriage seasons also pushed up prices.
“Gold is resisting a $1,050 an ounce level and once it is broken, the metal will see new dizzy heights,” said bullion merchant Rakesh Anand.
He added that the current festival and marriage season led by Diwali would continue to support the bullion prices at least for another fortnight.
Dollar and gold move in opposite directions. When dollar declines, gold shines as the metal is considered a safe hedge against inflation.
Meanwhile, the US currency has been declining on reports that secret talks are on between the Gulf states, Russia and China to replace dollar for oil trading immediately triggered a fall in dollar.
Another bullion merchant Ravi Jalan said, “Gold is being used as a hot currency and being picked up by investors.”
He added that the market is likely to pick up further once the ‘Diwali’ festival comes closer.
Traders said demand for silver coins and sovereign normally pick up during the last quater as people use them for gifting purpose in marriages and offer in prayers to god.
Standard gold and ornaments surged by Rs 160 each at Rs 16,060 and Rs 15,910 per 10 gm, respectively. Sovereign also traded higher by Rs 50 at Rs 12,950 per piece of 8 gm.
Silver ready spurted by Rs 450 to Rs 27,000 a kg and weekly-based delivery by Rs 490 to Rs 27,040 a kg. Silver coins rose by Rs 200 to Rs 32,000 for buying and Rs 32,100 for selling of 100 pieces.
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