Silver hits new high at Rs 49,700; gold up by Rs 90

New Delhi, Feb 22 (PTI) Silver surged to an all-time highat Rs 49,700 per kg in the bullion market today on sustainedbuying by stockists amid firming global trend. Gold alsogained Rs 90 to Rs 20,960 per 10 grams.

Buying activity gathered momentum as silver extendedgains to hit yet another 31-year high in global markets andgold scaled to a seven-week high, amid unrest in the MiddleEast and concern that inflation would boost demand for theprecious metals.

Gold in global markets, which normally sets a price trendon the domestic front, rose to USD 1,410.75 an ounce, thehighest level since January 4 and silver advanced to USD 34.31an ounce, the highest level since 1980.

Beside, pick up in retail customers'' demand in view ofthe ongoing marriage season also boosted market sentiments.

On the domestic front, silver rose further by Rs 200 tonew peak of Rs 49,700 per kg and weekly-based delivery byRs 240 to Rs 49,730 per kg. The metal has gained Rs 3,000 inthe last three trading sessions.

However, silver coins continued to be asked aroundprevious level of Rs 54,000 for buying and Rs 54,500 forselling of 100 pieces in restricted buying.

In line with general firming trend, gold of 99.9 and 99.5per cent purity climbed up by Rs 90 each to Rs 20,960 and Rs20,840 per 10 grams, respectively. Sovereign also rose by Rs20 to Rs 17,000 per piece of eight grams.