Silver prices surged to set new peaks by gaining Rs 500 to Rs 42,000 per kg, as stockists and jewellers increased their holdings to cash in on the ongoing marriage season amid a firm global trend.
Gold also inched up further by Rs 10 to Rs 20,360 per 10 grams on rising jewellery demand, reaching more close to its record level of Rs 20,600 per 10 grams on November 11.
Analysts said stockists and jewellers enlarging their positions for the ongoing marriage season and reports of a firm trend in global markets led to the rise in silver and gold prices.
The gold in overseas markets, which sets the price trend on the domestic front, rose 0.04 per cent to USD 1,354.10 an ounce and silver by 1.33 per cent to USD 27.35 an ounce.
The precious metals were also supported, as investors shifting their funds from melting equities to surging bullion for quick gains. The BSE stock index fell to a two-month low last week.
On the domestic front, silver ready rose by Rs 500 to Rs 42,000 per kg and weekly-based delivery to a never-seen-before level of by Rs 615 to Rs 41,555 per kg.
Silver coin prices also surged to record levels by adding Rs 1100 to Rs 45,100 for buying and Rs 45,200 for selling of 100 pieces on brisk buying for the ongoing marriage season.
These coins are normally used for gifting purpose during marriage celebrations.
In line with a general firm trend, the gold of 99.9 per cent purity added Rs 10 to Rs 20,360 and gold of 99.5 per cent purity by Rs 30 to Rs 20,260 per 10 gram. Sovereign continued to be asked on its previous level of Rs 16,400 per piece of eight gram.