Gold, silver start week on firm note, rise on global cues

New Delhi, Nov 7: Buoyed by a firming trend overseas and rising domestic demand, both gold and silver kicked off the week on a strong note today (Nov 7) in the bullion market here.

While gold rose by Rs 225 to Rs 28,540 per 10 grams today to meet the rising demand for the ongoing marriage season, silver rose by Rs 200 to Rs 56,700 per kg on pick-up in demand among industrial units and coin-makers.

Trading sentiments bolstered, as gold in London rallied to a six-week high and climbed up by 1.1 per cent to USD 1,773.35 an ounce.

Italian Prime Minister Silvio Berlusconi's allies pressured him to step aside after contagion from the region's sovereign debt crisis pushed Italy's borrowing costs to euro-era records.

It overshadowed Greek Prime Minister George Papandreou's agreement to step down, weakening European equities and shifting investor sentiments to the precious metal.

Besides, retailers and jewellers buying for the ongoing marriage season further fuelled the uptrend.

In the domestic market here, the gold of 99.9 and 99.5 per cent purity shot up by Rs 225 each to Rs 28,540 and Rs 28,400 per 10 grams, respectively. The metal had gained Rs 95 in the previous session. Sovereigns rose by Rs 50 to Rs 22,250 per piece of eight grams.

Silver ready recovered by Rs 200 to Rs 56,700 per kg, after losing Rs 600 in the previous session. Silver weekly- based delivery added Rs 50 to Rs 56,300 per kg.

Silver coins shot up by Rs 3,000 to Rs 65,000 for buying and Rs 66,000 for selling of 100 pieces on rising seasonal demand.

PTI