Precious metals observe mixed trend

Mumbai, Nov 13: Precious metals observed a mixed trend today as pure Gold shot up by a huge Rs 2,590 per ten gm while Silver slumped by Rs 335 per kg, traders at the Bombay Bullion Association said.

Reports from Tokyo market stated that Gold added to the previous day's losses and hovered below USD 800 an ounce on Tuesday as the Dollar held onto gains against the Euro, while Tokyo futures were kept under pressure by a firm Yen.

The Dollar rose sharply on Monday, retracing some of the ground it recently lost as nervousness over credit-related losses at US banks triggered a wave of risk reduction in light volume.

Such fears also drove currency dealers to unwind risky carry trades, in which investors sell low-yielding currencies like the Yen and buy higher-yielding currencies.

Spot Gold was trading at USD 796.50/797.30 an ounce as of 0108 GMT, down from USD 803.10/803.90 in New York on Monday.

Gold rallied to a 28-year high of USD 845.40 an ounce on Wednesday last week, but failed to reach a record of USD 850 struck in January 1980.

Following are the opening rates of spot Silver and Gold: Silver (per kg).999 fineness grade: Rs 19,545, Gold (per 10 gm): Gold 99.5 purity standard mint Rs 10,315, Gold 99.9 purity pure Gold Rs 13,060.

UNI