The Hindu Business Line : Silver utensils price tops Rs 10,000 a kg

SILVER utensils and jewellery price in the Mumbai bullion market touched Rs 10,000-level a kg on Tuesday, following a firm trend in London market coupled with limited but continued demand in the country, traders said.

Silver rose by Rs 90 a kg and gold recorded a sharp jump of Rs 130 per 10 g in a single day.

"Traders are today quoting Rs 10,000 a kg for selling silver utensils and jewellery but wholesale traders are quoting around Rs 9,880 a kg," a leading trader said.

Silver .999-fineness opened at Rs 9,790 a kg and ended at Rs 9,880 a kg. "Silver prices are likely to open higher on Wednesday," a dealer said.

"Daily arrivals in silver were around 400 kg and local demand for silver was mainly from industrial buyers. Volume of trades was limited. Silver recorded a sharp gain today mainly due to London market as the metal crossed $6 an ounce today," Mr Madhusudan Daga, a bullion analyst, told Business Line.

"Silver prices are likely to rule higher, considering a firm trend in world market," he said.

In Mumbai, standard gold prices too recorded a sharp rise in a single day as the yellow metal opened at Rs 6,300 and ended at Rs 6,360 per 10 g, higher by Rs 130 per 10 g over previous close. Gold .999 prices, after opening at Rs 6,340 per 10 g, were ended at Rs 6,400 per 10 g, higher by Rs 130 over the previous day.

"Today, demand for gold was extremely limited for new jewellery but there were buyers mainly investors, looking to firming world prices. Banks sold about 70 kg gold during the day," Mr Daga said.

"Gold prices are expected to go up further," he added.