Gold extends rally; up by Rs 50, silver recovers by Rs 200

New Delhi, Nov 3: Gold maintained its upward march for the third straight session today (Nov 3) by gaining Rs 50 to Rs 27,990 per 10 grams, on increased buying by retailers and jewellers to meet the ongoing marriage season demand amid a firming global trend.

Silver also recouped by rising Rs 200 to Rs 56,000 per kg on increased offtake by industrial units and jewellery makers. It had plunged by Rs 900 per kg yesterday.

Trading sentiments remained higher after gold gained in New York as concerns about deepening Europe's sovereign debt crisis spurred demand for the metal as a safe haven.

Gold in global markets, which normally sets the price trend on the domestic front, recorded a sharp gain of USD 17.50 to USD 1,738.40 an ounce and silver rose by 2.45 per cent to USD 34.27 an ounce in New York last evening.

In addition, rising local demand in view of the ongoing marriage season and some investors shifting their funds from weakening equity to bullion also bolstered trading sentiments.

On the domestic front, gold of 99.9 and 99.5 per cent purity gained Rs 50 each to Rs 27,990 and Rs 27,850 per 10 grams, respectively. The metal has gained Rs 400 in the last two trading sessions.

Sovereigns continued to be enquired at last level of Rs 22,100 per piece of eight grams in restricted buying at prevailing higher rates.

Silver ready recovered by Rs 200 to Rs 56,000 per kg and weekly-based delivery by Rs 665 to Rs 56,500 per kg, respectively. The white metal had lost Rs 900 yesterday. Silver coins remained stable at Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.

PTI