Silver touches new high at Rs 42,400 a kg on global cues

Silver prices rallied by Rs 400 to an all-time high of Rs 42,400 a kg in the national capital today, on frantic buying by stockists to encash on the ongoing marriage season amid a firm global trend.

Gold also moved up by Rs 70 to Rs 20,430 per 10 grams on rising jewellery demand, reaching nearer to its record level of Rs 20,600 per 10 grams set on November 11.

The precious metals surged on rising demand as stockists and jewellery makers increased their holdings for the ongoing marriage season.

Trading sentiment further bolstered on a firm global trend, as the dollar fell against the euro on optimism that a deal to rescue Ireland's banks might curb deepening debt crisis.

The gold in overseas markets, which sets the price trend on the domestic front, rose 0.7 per cent to $1,361.80 an ounce and silver to the highest level in more than a week by gaining 1.8 per cent to $27.81 an ounce. 

On the domestic front here, silver ready added Rs 400 to touch a new high of Rs 42,400 per kg, and silver weekly-based delivery by Rs 375 to Rs 41,930 per kg on speculators' buying fresh positions.

Silver coins also zoomed to record levels by gaining Rs 800 to Rs 45,900 for buying and Rs 46,000 for selling of 100 pieces. The coins are normally used as gifts during weddings.

In line with a general firm trend, the gold of 99.9 per cent purity rose by Rs 70 to Rs 20,430 and gold of 99.5 per cent purity by Rs 50 to Rs 20,310 per 10 grams. Sovereign remained unchanged at Rs 16,400 per piece of eight gram.