Gold, Silver gain on investor nervousness

Precious metals gained marginally on Monday in early trade at the London spot market.

Spot gold touched $671 an ounce against Friday’s close of $670.40. Silver ruled at $12.83 an ounce ($12.79).

The local market attributed this to the injection of liquidity by the Central banks of developed economies and investor nervousness about other assets.

Gold in the Mumbai spot market was quoting at Rs 8,850 for 10 g, while silver was quoted at Rs 17,820 a kg.

The plunge in gold prices evident intra-day on Friday that saw the metal fall below $660 an ounce has thus proved to be short lived. The recovery in silver prices by close of Friday too has been sustained.

Central banks are yet to sell nearly 200 tonnes of gold (according to latest available data) before the September 26 deadline as per the original agreement.

There is bullishness in the futures markets due to near completion of the Central bank sale and de-hedging by mining companies, said Prithviraj Kothari, Director of Riddhisiddhi Bullions.

“Prices in can go up to Rs 9,500 for 10 g in the domestic markets,” he added as reported on sify.