Silver’s dream run on, low demand hits gold

Mumbai, Sept. 27: Silver continued its uninterrupted record-breaking rally at the bullion market here on Monday, hitting yet another peak on hectic speculative buying on the back higher global advices.

Gold, however, declined further owing to reduced stockists as well as lower jewellery demand despite prices ruling at record high in international markets.

Silver ready (.999 fineness) firmed up by `40 per kilo to close at `33,485 from last Saturday’s closing level of `33,445. It touched a of `33,510 in early trade.

Standard gold (99.5 purity) dropped by `50 per 10 grams to end at `19,090 from last weekend’s closing level of `19,140. Pure gold (99.9 purity) dipped by a similar margin to finish at `19,185, as against `19,235 previously.

Demand for gold in India hinges on a good monsoon, which boosts agriculture output and incomes for farmers, who account for 65 per cent of the country’s gold demand.

In Europe, gold zoomed to a record high of $1,300 an ounce on global economic worries amid dollar weakness.

Spot gold was bid at $1,299.30 an ounce in early trade, as against $1,295.50 late in New York on Friday. Silver jumped to its highest in three decades at $21.61 an ounce.

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