Gold declines, silver hits new high of Rs58,600 per kg

Silver prices shot up by Rs200 to a record level of Rs58,600 per kg in the national capital today on sustained buying by stockists driven by a firm global trend while gold declined on reduced offtake at existing higher levels.

Silver is on a record making spree since last five sessions after the metal in overseas markets climbed to a 31-year-high by adding 0.60% to $39.79 dollar an ounce on a weak dollar. Besides, rising inflation augmented demand for the metal among investors.

However, gold turned bearish as it declined in Asia on the back of speculators booking profits after it rose to a record yesterday.

Reduced offtake by retail customers at existing higher levels further fuelled the trend.

Gold in global markets, which normally sets the price trend on the domestic front, fell by 0.4% to $1,454.35 an ounce, after rising to a record level of $1,463.70 an ounce yesterday.

On the domestic front, silver ready shot up by Rs200 to an all-time high of Rs58,600 per kg, while weekly-based delivery gained Rs35 to Rs57,850 per kg. Silver coins continued to be asked at their last level of Rs64,500 for buying and Rs65,000 for selling of 100 pieces.

On the other hand, gold of 99.9 and 99.5% purity declined by Rs35 each to Rs21,265 and Rs21,145 per 10 grams, respectively. Sovereign held steady at Rs17,550 per piece of eight grams.