Gold movements

A divergent trend developed on the bullion market during the past week as silver rose on increased offtake by industrial units and coin makers, while gold declined on restricted buying at prevailing higher levels.

Traders said increased offtake by industrial units and coin makers amid firming trend in overseas market mainly surged silver prices.

Retailers refraining from buying gold at existing higher levels mainly pulled down the prices, they said.

Firming global trends, which normally set price trend on the domestic front here, failed to impact as retail customers postponed their buying decision.

On the global front, gold recovered smartly but could not hold on to its initial gains due to profit-taking though it ended slightly higher as most of the trading sessions was sluggish throughout the week in view of long 'Christmas Holidays'.

Meanwhile, silver maintained the rallying momentum on investment buying.

In New York, gold for February delivery ended higher at USD 1,380.50 on an ounce Thursday's from last weekend's level of USD 1,379.20 an ounce.

Silver for March delivery also closed higher at USD 29.33, as against USD 29.13 previously.

Silver ready commenced higher and rose further to Rs 45,300 before ending at Rs 44,900 per kg, showing a rise of Rs 100. Silver weekly-based delivery gained Rs 90 to Rs 44,420 per kg.

Silver coins spurted by Rs 400 to Rs 49,400 for buying and Rs 49,500 for selling of 100 pieces. However, gold of 99.9 and 99.5 per cent purity lost Rs 30 each to Rs 20,700 and Rs 20,580 per 10 grams, respectively, while sovereign remained stable at Rs 16,750 per piece of eight grams.

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