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Silver on a roll on fund buying
[February 06, 2006]

Silver on a roll on fund buying


(The Economic Times (India) Via Thomson Dialog NewsEdge): Silver prices soared in Mumbai on Friday to touch a life-time high of Rs 13,550 per kg on aggressive buying led by coin fabricators and industrial users after a steep rise in international prices. The previous record for the white metal was on February 3, when the metal had touched Rs 13,500.



In other precious metals, gold, which broke all its previous record on Friday, opened on a promising note, but later trimmed some early gains after a setback in Hong Kong prices. In European trading, the yellow hovered near its highest level in 25 years on Monday as tensions over Iran's nuclear programme provked some speculative buying.

Gold markets are expected to find new upsides this week before profit taking sets in, analysts said on Monday. Over the week, gold were in driver's seat as markets gripped by geopolitical tensions, high fuel prices and the weak dollar.


In Mumbai, ready silver (.999) recorded a fresh gain of Rs 75 to close at Rs 13,550 per kg, a level not seen before, on brisk buying.

Attributing the rise in silver prices, sources in the bullion market said the metal was quoted higher at $9.80/9.83 an ounce in London early trade on Monday, which triggered a fresh bout of speculative buying in the domestic market. The metal later drifted lower to $9.79/9.02 as dealers took profits.

In Chennai, the white metal rose by Rs 75 at Rs 14,745 a kg. In Kolkata, it was quoted Rs 100 higher at Rs 13,450. In Delhi, silver for immediate delivery shot up by Rs 60 to settle at Rs 13,800.

In yellow metal, Delhi and Chennai glittered the most and set fresh record on fund buying. The metal ended in an identically same figure both in Delhi and Chennai at Rs 8,300 per 10 gm.

In Mumbai, standard gold (99.5) opened higher at Rs 8,230, but later eased marginally on profit-booking. However, the metal ended Rs 25 higher at Rs 8,215 per 10 gm. The metal had touched a new record on February 3 this year, when it had touched Rs 8,230. Pure gold (.99.9) also did so and ended Rs 30 higher at Rs 8,260. In Kolkata, it edged up by Rs 35 at Rs 8,340 per 10 gm.

In London, spot gold rose as high as $572 an ounce, before deifting lower to $571.0/571.9, still up from $567.2/568.1 in the US market on Friday. In Hong Kong, gold melted by $2.9 to close at $569.6/570.4 an ounce from $572.5/573.3 previously.

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