Gold rises on stray demand; silver drops

Mumbai-India (Dec 27)  Gold prices ended a tad higher in listless trade at the domestic bullion market here on modest local buying support amid investors' caution following metal's spectacular rally overnight.

In contrast, silver succumbed to fresh bouts of selling from speculative traders. Standard gold (99.5 purity) edged up by Rs 5 to settle at Rs 26,920 per 10 grams from Friday's level of Rs 26,915. Pure gold (99.9 purity) also added by a similar margin to end at Rs 27,070 per 10 grams as compared to Rs 27,065.

However, silver (.999 fineness) fell back by Rs 130 to finish at Rs 37,650 per kg as against Rs 37,780 on December 26. Globally, the yellow metal recovered sharply, the biggest advance since Decmber 9, in a quiet trading day, steered by heavy short covering, which also supported by weaker dollar.

Gold for February delivery shot up by USD 22.10, or 1.88 per cent, to conclude at USD 1,196.30 an ounce on the Comex division of the NYMEX late on December 26, while silver March contract settled at USD 16.14 an ounce.