Gold, silver remains up on firm global cues, seasonal demand

Gold rose for the third straight day in the national capital today by adding Rs40 to Rs20,670 per ten grams on sustained buying amid firm global cues.

Silver rose further by Rs500 to Rs44,800 per kg in line with a rise of Rs300 in the previous session as industrial units remained net buyers.

Trading sentiment remained bullish after gold gained for the third day in global markets on concerns over the pace of the US economic recovery leading to a decline in the value of dollar, boosting the yellow metal's appeal as an alternative investment option.

Gold in international markets, which normally sets a price trend on the domestic front, advanced 0.5% to $1,375.18 an ounce and silver by 1.5% to $29.28 an ounce, the highest level since January 13.

On the domestic front, silver ready remained in demand and jumped up by Rs500 to Rs44,800 per kg and weekly-based delivery spurted by Rs670 to Rs44,650 per kg.

Silver coins followed suit and gained Rs200 to Rs50,600 for buying and Rs50,700 for selling of 100 pieces.

In line with a general firm trend, gold of 99.9 and 99.5% purity added by Rs40 each to Rs20,670 and Rs20,550 per ten grams. Gold had gained Rs95 per ten grams in the last two sessions. However, sovereign remained stable at Rs16,900 per piece of eight grams in restricted buying.