Silver rises further to Rs54,200 on global cues, gold up by Rs70

Silver extended gains for the third straight day by adding Rs150 to Rs54,200 per kg today on increased buying by stockists in tandem with a firming global trend. Gold also recovered by Rs70 to Rs22,370 per 10 grams, driven by the ongoing wedding season demand.

Buying activity gathered momentum after gold advanced in global markets as financial turbulence in Europe deepened and the dollar weakened, spurring demand for precious metals as a store of value.

Gold in global markets, which normally sets a price trend on the domestic front, rose by 0.5% to $1,500.10 an ounce and silver by 0.8% to $35.28 an ounce.

On the domestic front, silver ready advanced by Rs150 to Rs54,200 per kg. It had gained Rs850 in the last two trading sessions. Similarly, the silver weekly-based delivery jumped up by Rs260 to Rs53,810 per kg.

However, silver coins continued to be asked around previous levels of Rs61,000 for buying and Rs62,000 for selling of 100 pieces.

In line with a general firming trend, gold of 99.9% and 99.5%  purity recovered by Rs70 each to Rs22,370 and Rs22,250 per 10 grams, respectively, while sovereigns remained stable at Rs18,500 per piece of eight grams in limited deals.