Gold rallies on heavy demand, silver recovers

Written by PTI | Mumbai | Updated: Feb 27 2013, 05:37am hrs
Gold prices rallied further at the bullion market here today on heavy demand from stockists and investors supported by higher global cues.

Silver also recovered smartly on good speculative offtake amidst renewed industrial buying.

Standard gold of 99.5 per cent purity surged Rs 155 to close at Rs 29,605 per 10 gm from Tuesday's closing level of Rs 29,450.

Pure gold of 99.9 per cent purity also climbed by a similar margin to finish at Rs 29,740 per 10 gm from Rs 29,585.

Silver ready (.999 fineness) shot up Rs 650 to end at Rs 55,865 per kg from Rs 55,215 previously.

'Good off-take from traders anticipating tomorrow's budget policies also supported today's gold demand', dealer said.

In overseas, gold strengthened on Federal Reserve Chairman's backing for the continuation of Central Bank's quantitative-easing measures.

Gold for April delivery spurted by USD 28.90 to settle at USD 1,615.50 an ounce on the Comex division of the NYMEX late yesterday and Silver for May contract rose 27 cents to USD 29.32 an ounce.