Gold closes at two-year high, silver at two months up

Mumbai, Dec 29 (UNI) The spot gold today ended at a two-year high of Rs 10,765 per ten gm with a handsome gain of Rs 105, while silver closed at a two months high of Rs 19,455 per kg with a smart gain of Rs 90 from their last close, due to lack of offers from stockists coupled with encouraging advice from global markets, traders at the Bombay Bullion Association (BBA) said.

Values of standard mint gold (99.5 purity) and pure gold (99.9 purity), crossed Rs 10,700 mark after two years and opened positive at Rs 10,705 per ten gm and Rs 10,755 per ten gm respectively, on renewal of good festival buying support by local ornament makers.

Later, both the prices closed at a two year high of Rs 10,715 for standard mint and Rs 10,765 for pure gold for ten gm each.

Both the prices further zoomed up smartly by Rs 105 each as compared to their previous close. The yellow metal shot up smartly by Rs 320 in the last three days, traders said.

Silver (.999 fineness) variety crossed Rs 19,400 mark after two months and closed at a eight week high of Rs 19,455 per kg, before it resumed high at Rs 19,445 per kg. Finally the white metal soared up by Rs 90 from its last close and Rs 285 within three days.

The Bombay Bullion Association senior member, Mr Harmesh Arora told UNI that there was bullish trend at the global markets since the last few days. Imported gold was costlier by about 25 per cent against the present domestic prices which is due to lesser arrival of stocks from global producing channels. Rupee was stronger at around Rs 39.40 in the last couple of months. This also contributed to bullish face in the precious metal prices.

''Investors have turned in more fund in the yellow and white metals, which has brought into effect heavy speculative activities in precious metal markets. There was lack in offers by stock-holders because of encouraging advises from overseas markets,'' Mr Arora added.

Both yellow and white metals prices are likely to cross Rs 11,000 per ten gm and Rs 20,000 per kg respectively within two months in the coming year 2008.

Traders received reports from global markets that Gold has advanced to trade closer to one-month high on Friday, bolstered by stronger oil prices, a weakness in the dollar and worries over geo-political risks in Pakistan and northern Iraq.

In London, Singapore and other markets, spot gold rose to USD 840.40/841.10 per ounce yesterday from USD 828.70/830.50 on Thursday when it rose past USD 830, its highest level since November 26. While silver rose to USD 14.75/14.78 an ounce at London market from USD 14.65 /14.73 the previous day in New York, which reflected the bullish trend in the domestic prices, a leading dealers added.

Following were the spot Silver and Gold closing prices: Silver (per kg) .999 grade: Rs 19,455 (19,365) Gold (per 10 gm): Standard mint 99.5 purity: Rs 10,715 (10,610) Pure gold 99.9 purity: Rs 10,765 (10,660) UNI AR SR AG SLD RK1842