Gold, silver continue ascend

DOMESTIC REVIEW/BULLION

Gold re-emerged during last week in the domestic market when internationally gold price rose to the highest level since mid- January 2004 as nervous investors reacted to violence and strife in west Asia.

Spot gold (99.90 purity) in the domestic market increased to Rs 6120 on Friday.

Thereafter spot gold topped out below $424 during New York trading but ended the week comfortably above $422. Standard gold (99.50 purity) closed at Rs 6075.

Precious white metal silver continued its week over week gains and closed at Rs 11,720 after hitting its new high of Rs 11, 865 intra week. This was higher compared with previous week's closing of Rs 10,780 per kilogram.

On the National Commodities and Derivatives Exchange (NCDEX), the April contract closed at Rs 6126.10 as against previous week's Rs 6070.65. The June contract, introduced during the week following expiry of March contract, closed at Rs 6155 as against its close of Rs 6141 on Wednesday.

Gold futures on the Comex division of the New York Mercantile Exchange ended Friday over $5 higher above $422 per ounce on the back of fund and bullion bank buying. The most-active April contract settled $5.30 higher at $422.20 per ounce.

On the Multi Commodities Exchange (MCX) the April contract of gold futures closed at Rs 6089.00 on Friday as against the previous week's close of Rs 6063.

The most active June contract closed at 6127 as against previous week's close of Rs 6091 On the National Multi Commodity Exchange (NMCE) of India, the April contract of gold futures closed at Rs 6140.00 on Friday as against the previous week's close of Rs 6071.

Silver continued its upward swing in the domestic futures market. May futures on MCX closed at Rs 11283 as against its previous close of Rs 11055. On the NCDEX, April futures closed at 11375.55 as against previous week's close of Rs 11065.20. NCDEX May future closed at Rs 11,470.

May silver on the COMEX in New York made an 11.5-cent gain to close at $7.717, the highest settlement in the contract's history. Potential upside targets on a closing basis include $7.75, $7.77 and $7.80, market experts opine.