Gold rallies to nearly 7 month-high of Rs 9,595

Written by Agencies | Mumbai, September 29: | Updated: Sep 30 2007, 00:00am hrs
Gold prices rallied to a nearly seven-month high to end at Rs 9,595 on the bullion market on persistent stockists' buying in view of sharp rise in global markets.

Silver also advanced on sustained industrial demand.

Standard gold (99.5 purity) rose further by Rs 85 per ten grams to Rs 9,595 from Rs 9,510 previously. On March 2, it had soared to Rs 9,525.

Pure gold (99.9 purity) also firmed up to Rs 9,645 from Rs 9,555 previously.

Amid declining dollar and soaring crude oil prices, which fuelled fears of recession in the world's largest economy, precious metals rallied across the board yesterday, with some gold and platinum contracts setting records in New York as traders squared long positions on the last day of the quarter.

December gold rose by USD 10.10 to settle at USD 750 an ounce on the Comex division of the Mercantile Exchange.

December silver rose by 27.5 cents to settle at USD 13.92 an ounce.

In London, spot gold rose to a fresh high, catapulting platinum closer to a new record as market participants said a bearish outlook for the dollar could propel prices further.

Spot gold hit USD 739.80 an ounce yesterday, close to a 28-year high, a rise of two per cent from Thursday's low and 10 per cent this month.

Persistent dollar weakness along with inflation concerns are driving the gold price, attracting a fresh investor's interest, analysts said.

Turning to the local market, silver ready (.999 fineness) looked up by Rs 125 per kilo to Rs 18,320 from Rs 18,195 previously.