Pure gold closes at three year high of Rs 9,800 per ten gm

Mumbai, Oct 17 (UNI) Pure gold rallied for the second consecutive day today and zoomed to a three years high of Rs 9,800 per ten gm with a modest gain of Rs 35 from its last close on sustained brisk seasonal demand from ornament makers along with bullish advice from global and upcountry markets, traders at the Bombay Bullion Associaton (BBA) said.

But, Silver variety ended lower again at Rs 18,355 per kg with a loss of Rs 115 mainly on weak advice from global markets, traders added.

Silver (.999 fineness) variety opened low by Rs 110 at 18,360 per kg from it last close on poor demand from local dealers.

Later, the white metal drifted further lower and closed negative at Rs 18,355 with loss of Rs 115 per kg from its previous close. White metal crashed steeply by Rs 280 in the last two days.

There was an increase in offers from stockists in view of bearish global and upcountry advice.

In New York, London and other markets, the white metal touched a low of around USD 13.65/13.72 per troy ounce against USD 13.78/13.85 per troy ounce on the previous day, which reflected a downward trend in the domestic prices, traders pointed out.

Pure gold (99.9 Purity) variety crossed Rs 9,800, opening a new peak at Rs 9805 while Standard gold (99.5 purity) grade opened high at Rs 9,750 with a gain of Rs 35 each from their last close.

Later, standard mint gold closed at a three year high at 9,750 per ten gm and pure gold variety ended at three year high of Rs 9,800 per ten gm, with a big gain of Rs 35 each from their last close.

The yellow metal shot up by Rs 100 in the last two days. The prices are likely to cross Rs 10,000 mark before this Dussera.

Traders attributed the bullish trend to India's largest mutual fund, Reliance Capital Asset Management Ltd, launching an exchange-traded fund that would invest in physical gold. There was brisk seasonal demand mainly from jewellers. Sellers were holding their stocks in view of bullish advice from global markets.

In London, New York and Asian markets, gold was up at USD 755.25/762.00 per troy ounce compared to USD 750.25/757.00 on the previous day, which helped to boost in domestic prices, traders added.

Following are the spot silver and gold closing prices: Silver (per kg) .999 grade : Rs 18,355 (18,470) Gold (per 10 gm): Standard mint 99.5 purity: Rs 9,750 (9,715) Pure gold 99.9 purity: Rs 9,800 (9,765) UNI