Silver, gold remain up on firm global cues, seasonal demand

Silver advanced by Rs 1,600 to Rs 55,900 per kg, while gold added another Rs 90 to Rs 22,780 per 10 grams today on sustained buying by stockists and peculators, triggered by a firming global trend.

Buying activity gathered momentum after gold advanced in the global markets as concerns over Europe's deepening sovereign debt crisis spurred the demand for the metals as a protection of wealth.

Gold in global markets, which normally sets a price trend on the domestic front, rose by $8.90 to $1,526.10 an ounce and silver advanced by 4.45% to $36.63 an ounce in New York last night.  

Besides, some buying by retailers for the ongoing marriage season and shifting of funds from weakening equity to rising bullion also supported the uptrend in the prices.

On the domestic front, silver ready gained Rs 1,600 to Rs 55,900 per kg. It had gained Rs 1,100 in the previous session. Silver weekly-based delivery followed suit and surged by Rs 1,800 to Rs 55,900 per kg after a sharp rise of Rs 1,050 yesterday. 

Silver coins also attracted brisk buying support and recorded a handsome gain of Rs 1,000 to Rs 63,000 for buying and Rs 64,000 for selling of 100 pieces. Gold of 99.9 and 99.5% purity added Rs 90 each to Rs 22,780 and Rs 22,660 per 10 grams, respectively.

Both had gained Rs 110 each in the previous session. Sovereigns followed suit and gained Rs 50 to Rs 18,650 per piece of eight grams.