Thursday, 20 November 2008

Gold strengthens further on safe-haven buying; silver slips

Mumbai, Nov 20 (PTI) Gold prices strengthened further on the bullion market here today on sustained demand from stockists in view of marriage season coupled with save-haven buying from investors due to persistent fall in equity prices and higher global advices.
Silver, however, declined on lack of industrial demand.

Bearish equity markets forced investors to shift their funds in gold, boosting the yellow metal prices.

Gold rose in London buoyed by interest from jewellery makers and investors seeking safety, but a stronger dollar and lower oil prices are expected to weigh on the sentiment.

Spot gold was quoted higher at USD 743.30/745.30 an ounce from USD 732.40 an ounce in New York late on Wednesday.

Gold is used as a hedge against turmoil in financial markets -- equity prices in Europe and the United States are trading at their lowest levels in more than five years.

In the local market, standard gold (99.5 purity) rose by Rs 160 per ten grams to Rs 12,175 from Rs 12,015 previously.

Pure gold (99.9 purity) also shot up by Rs 155 per ten grams to Rs 12,235 from Rs 12,080.

However, silver ready (.999 fineness) fell by Rs 60 per kilo to Rs 16,740 from Rs 16,800. PTI

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