Silver, Gold opens firm on strong global advice

Mumbai, May 19: The values of Silver and Gold today opened further higher at Rs 23,945 per kg with a massive gain of Rs 130 per kg and for Gold at Rs 12,530 per ten gm with a small gain of 70 from their last close on fresh good demand from local dealers, in view of bullish advice from Asian markets, traders at the Bombay Bullion Association (BBA) said.

Traders received a positive reports from Sydney that Gold extended its upward price run on Monday, rising almost a half-per cent to just over Australian Dollar 900 an ounce for the first time in almost a month, defying a rising Dollar. Spot gold cost Dollar 903.30 an ounce at against USD 899.55 late in New York on Friday.

It last traded above USD 900 on April 24, when spot hit a high of Dollar 906.30 an ounce. Gold futures for June delivery on the COMEX division of New York Mercantile Exchange added Dollar 5.40 an ounce to Dollar 905.30 an ounce in electronic trading. A contract close above Dollar 900 an ounce could send gold futures to test the next resistance area between Dollar 920 and Dollar 925.

Oil rose 31 cents to Dollar 126.60 a barrel, edging closer to last week's record high near Dollar 128, stoking inflation concerns, typically a prompt to buy gold. Oil was underpinned by growing sentiment that Organisation of Petroleum Exporting Countries is reluctant to raise output. Silver also edged up 9 cents to Dollar 16.99 an ounce from it last finish which helped to boost in domestic prices, dealers pointed out.

Following were the opening rates of spot silver and gold in the bullion market here today: Silver (per kg) 999 fineness grade: Rs 23,945 Gold (per 10 gm): 99.5 purity standard mint: Rs 12,470 99.9 purity pure gold: Rs 12,530.

UNI