Gold, silver extend gains on sustained buying, global cues

MUMBAI-INDIA (Sept 7)  Gold and silver extended gains for the second straight day at the bullion market today on sustained buying by stockists in line with a firming global trend.

Traders said sentiment bolstered following a firming global trend after US payroll gained last month, reviving prospects for extended economic stimulus by the Federal Reserve and raising demand for the metal as a store of value.

Gold in New York, which normally set price trend on the domestic front, gained 1 per cent to USD 1,386.50 an ounce and silver by 2.7 per cent to USD 23.89 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity shot up by Rs 725 each to Rs 31,725 and Rs 31,525 per ten grams, respectively, after gaining Rs 50 yesterday. Sovereign added Rs 100 to Rs 25,200 per piece of eight gram.

Silver ready rose by Rs 50 to Rs 54,300 per kg while weekly-based delivery climbed by Rs 1,730 to Rs 54,930 per kg. The metal had gained Rs 550 yesterday. Silver coins spurted by Rs 1,000 to Rs 88,000 for buying and Rs 89,000 for selling of 100 pieces.