Silver, gold advance on rising global trend

Silver advanced by Rs2,600 to Rs58,500 per kg, while gold added Rs40 to Rs22,820 per 10 grams today, continuing their upward rally for the third straight session, on aggressive buying by speculators and investors on rising global trend.

In the previous two sessions, silver gained Rs2,700, while gold rose by Rs200.

Trading sentiments remained bullish after silver rallied in global markets and gold climbed as Europe's deepening debt crisis increased investor demand for precious metals as a protection of wealth.

Silver in global markets, which normally sets a price trend on the domestic front, rose by 1.8% to $38.59 an ounce, the highest level since May 11. Gold also climbed 0.4% to $1,530.97 an ounce.

Besides, pick-up in seasonal demand further bolstered the trading sentiment.

On the domestic front, both silver ready and weekly-based delivery surged by Rs2,600 to close at Rs58,500 per kg.

Silver coins followed suit and spurted by Rs2,000 to Rs65,000 for buying and Rs66,000 for selling of 100 pieces.

In a similar fashion, gold of 99.9% and 99.5% purity moved up by Rs40 each to Rs22,820 and Rs22,700 per 10 grams, respectively.

However, sovereigns continued to be asked around previous level of Rs18,650 per piece of eight grams in restricted buying.