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Heavy Gold Buying Continues, Up By Rs 875 To Rs 25,805

PTI 09 Aug 2011, 23:15:31 IST

New Delhi, Aug 9: Gold continued to sprint for the seventh trading session and breached the psychologically crucial level of Rs. 25,000 per 10 grams for the firs time at the domestic bullion market here on Tuesday amid heavy buying by speculators.

In contrast, silver prices tumbled following heavy unwinding by savvy traders and stockists amid sluggish industrial off-take.

“Gold prices are skyrocketing mainly due to ongoing turmoil in global financial system where the metal is scaling to multiple highs as a safe asset buying in troubled time after downgrading of the U.S. creditworthiness leading to a rout in world stock markets, traders said.

Standard gold (99.5 % purity) roared by a whopping Rs. 875 per 10 grams to close at Rs. 25,805 from Monday's closing level of Rs. 24,930.

Pure gold (99.9 % purity) also zoomed by Rs. 880 per 10 grams to end at Rs 25,925 from Rs. 25,045 on Monday.

However, silver ready (.999 fineness) plunged by a hefty Rs. 1,450 per kg to finish at Rs. 59,085 from its overnight close of Rs. 60,535.

In Europe, spot gold after hitting a high of USD 1,778 an ounce was trading at USD 1,769.90 an ounce, while silver fell to USD 38.21 an ounce. PTI