Gold, silver rise further on global cues, local buying support

New Delhi, Jan 31 (PTI) Both the precious metals, silverand gold extended gains on the bullion market today onsustained buying support by stockists and jewellers for theongoing marriage season, amid firm global trends.

While gold rose by Rs 80 to Rs 20,400 per 10 grams,silver surged Rs 300 to Rs 43,600 per kg.

Market analysts said sentiments remained bullish as goldclimbed in global markets, following escalating tensions inEgypt fanned concern that unrest might spread to other partsof the Middle East, increasing demand for the metal as safehaven.

Gold in global markets, which normally sets a price trendon the domestic front, gained 0.7 per cent to USD 1,346.27 anounce and silver by 1.5 per cent to USD 28.40 an ounce, thehighest since January 20.

Besides, shifting of funds from weakening equity torising bullion also bolstered the market sentiments, theysaid.

On the domestic front, gold of 99.9 and 99.5 per centpurity rose by Rs 80 each to Rs 20,400 and Rs 20,280 per 10grams, respectively. The metal had gained Rs 360 in theprevious session. Sovereign, remained stable at Rs 16,750 perpiece of eight grams in restricted buying.

Silver ready rose by Rs 300 to Rs 43,600 per kg, incontinuation to a jump of Rs 1,600 on Saturday andweekly-based delivery by Rs 340 to Rs 43,340 per kg.

However, silver coin lacked necessary follow-up supportat prevailing higher levels and lost Rs 200 to Rs 48,300 forbuying and Rs 48,400 for selling of 100 pieces.