Silver rallies on good demand, gold recovers

Mumbai, Feb 1 (PTI) Silver prices surged further at thebullion market here today on sustained buying by stockists andspeculators amidst higher industrial off-take.

Gold recovered moderately owing to fresh local buying aswell as jewellery demand on the back of better overseas cues.

Standard gold (99.5 per cent purity) firmed up by Rs 50per 10 grams to finish at Rs 19,995 from Monday''s closinglevel of Rs 19,945.

Pure gold (99.9 per cent purity) also moved up by Rs 35per ten grams to settle at Rs 20,090 from Rs 20,055 yesterday.

Silver ready (.999 fineness) spurted by Rs 440 per kiloto close at Rs 44,175 as compared to Rs 43,735 previously.

In Europe, Gold prices rose as dollar weakened againstbasket currencies as well as tension in Egypt and firm Asiansupport.

Spot gold was bid at USD 1,338.40 an ounce in early tradeas against USD 1,331.90 late in New York yesterday.

While silver was bid at USD 28.31 an ounce compared toUSD 28.04.