Gold rallies further, silver recovers

>> Friday, May 22, 2009

Gold prices flared up for the third consecutive day on the bullion market here today on persistent buying by stockists on the back of higher global cues.

Silver prices also recovered sharply on renewed industrial demand.

Gold prices held near two-month high above USD 950 an ounce in Europe today, consolidating after the previous session's two per cent rise, as investors bought the metal as a hedge against the weak dollar and financial risk.

Spot gold was quoted at USD 954.10 an ounce as against USD 953.40 an ounce late in New York on Thursday after reaching a high of USD 955.95 an ounce level for the first time since late March.

In the domestic market, standard gold (99.5 purity) rose further by Rs 105 per ten grams to Rs 14,540 from the yesterday's closing of Rs 14,435.

Pure gold (99.9 purity) also hardened by Rs 110 per ten grams to Rs 14,610 from Rs 14,500 previously.

Silver ready (.999 fineness) shot up by Rs 280 per kilo to Rs 22,770 from Rs 22,490.

Source - Economic Time