Gold crosses Rs 20,700-level, silver breaches Rs 44,000-mark

Both the precious metals sparkled on the bullion market here today with gold crossing the Rs 20,700-level and silver breaking Rs 44,000-mark in early trade on hectic buying from stockists triggered by sharp rise in the global market.

Sustained buying in view of the ongoing marriage season, also boosted the market sentiment.

In New York, wary investors turned their attention to these metals as an alternative investment on mounting worries over a spreading debt crisis in Europe and news that Chinese authorities approved a fund to invest in gold overseas.  

Gold for February delivery jumped by $18.60 to 1,386.10 an ounce on the Comex division of the New York Mercantile Exchange. Silver for March delivery jumped 3.8 per cent to $28.21 an ounce. Silver gained 15 per cent in November.

Turning to domestic market, standard gold (99.5 purity) resumed at Rs 20,715 from its previous close of Rs 20,540, revealing a rise of Rs 175 per 10 grams.

Pure gold (99.9 purity) also shot up by Rs 180 per 10 grams to open at Rs 20,815 from its last close of Rs 20,635. Silver ready (.999 fineness) too flared up by Rs 1,390 per kilo to open at Rs 44,075 from its preceding close of Rs 42,685.