Traders ride on gold, silver to tide over crisis

After the serial blasts in Mumbai on Tuesday, gold prices surged on the bullion market today, amid a hectic trade in the precious metals and vibrant financial activities.

While both standard gold and pure gold recorded a gain of Rs 250 per 10 gm, silver .999 witnessed an appreciation of Rs 520 a kg. By the end of today's trading, gold and silver prices have appreciated 27 per cent and 43 per cent, respectively, from the beginning of the year.

The serial blasts in the Western Railway trains, which rocked the country's commercial capital yesterday, have forced investors and retailers to buy precious metals "� gold and silver "� as a hedge to survive the crisis.

The market also received a booster as the yellow metal gained in overseas markets following tension over Iran's nuclear research programme.

After reports of Mumbai blasts, spot gold jumped by $3.85 or 0.62 per cent, to $628.35 an ounce, in London last evening, the highest price since June. Silver closed at $11.60 an ounce.

In the domestic market today, buying was largely speculative in nature "� and also indicative of hoarding by retailers "� amid panic and tension in the aftermath of the blasts.

There were hardly any purchases by jewellers and general consumers.

Following the Rs 250 appreciation in each, standard gold and pure gold were quoting at Rs 9,740 and Rs 9,690 per 10 gm, while silver .999 was selling at Rs 18,255 a kg after a Rs 520 surge.

In the last eight trading sessions in the bullion market, gold (both standard gold and pure gold) and silver prices have risen 5 per cent and 6 per cent or by Rs 485 (per 10 gm) and Rs 1,060 (a kg), respectively.

Standard gold and pure gold closed at Rs 9,690 and Rs 9,740 per 10 gm from Rs 9,205 and Rs 9,255, respectively, on July 1. Silver .999 ended the day's trading at Rs 18,255 a kg from Rs 17,195 on the first day of this month.

In National Commodity and Derivatives Exchange, the July contract was up 4.60 per cent to close at Rs 9,692, while the August and September contracts rose 4.71 per cent and 4.07 per cent, respectively.

After hitting the all-time high at Rs 10,665 on May 12, gold prices declined nearly 8.50 per cent in 18 days. In the same period since May 12, silver prices too went down by 12 per cent.