Gold price up on increased buying, silver drops

Mumbai-India (Sept 19)  Gold prices gained further momentum at the domestic bullion market here on firm demand from jewellery stockists and traders amid a buoyant overseas trend.

However, silver fell back after massive overnight rally on profit-taking.

Standard gold (99.5 purity) up by Rs 25 to settle at Rs 26,340 per 10 grams from Friday's close of Rs 26,315.

Pure gold (99.9 purity) also added by a similar margin to end at Rs 26,490 per 10 grams compared to Rs 26,465 earlier.

However, silver (.999 fineness) fell by Rs 175 to finish at Rs 36,230 per kg from Rs 36,405 yesterday.

In worldwide trade, the shiny metal rallied to near three- week high on safe-haven demand following the Federal Reserve's decision to keep key rates unchanged due to renewed fears over a China-led global economic slowdown.

Gold for December delivery surged by USD 20.80 to conclude at USD 1,137.80 an ounce on the Comex division of the NYMEX late yesterday and silver also rose to settled at USD 15.163 an ounce.

Source: TheStatesman