Silver rises to Rs 54,300 on global cues, gold up by Rs 110

Both the precious metals, silver and gold, strengthened today on stockists and speculators buying amid a firming global trend and rising seasonal demand.

While silver surged by Rs 1,100 to Rs 54,300 per kg, gold rose by Rs 110 to Rs 22,690 per 10 grams, wiping of most of the losses suffered in the previous session.

Trading sentiments turned bullish after gold gained in London as deepening concern over Europe's sovereign debt crisis spurred the demand for the precious metals as a protection of wealth.

Gold in global markets, which normally sets a price trend on the domestic front, rose by $2.55 to $1,519.57 an ounce and silver gained 1.2% to $35.49 an ounce. 

Besides, fresh buying by stockists and jewellery makers for the ongoing marriage season further fueled the uptrend. On the domestic front, silver ready gained Rs 1,100 to Rs 54,300 per kg, after losing Rs 1,000 in the last two trading sessions. 

Weekly based-delivery gained Rs 1,050 to Rs 54,100 per kg, after losing Rs 760 in the last two days. Silver coins also jumped up by Rs 3,000 to Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.

In line with a general firming trend, gold of 99.9 and 99.5% purity recovered sharply by Rs 110 each to Rs 22,690 and Rs 22,570 per 10 grams, respectively. Both had shed Rs 90 yesterday. Sovereigns also gained Rs 50 to Rs 18,600 per piece of eight grams.