Strong global rally helps gold scale 13k

 GOLD prices hardened further in the domestic market on Wednesday on the back of a strong global rally. In Mumbai, prices of standard and pure gold scaled Rs 13,000 per 10 gm to touch Rs 13,090 and Rs 13,150 per 10 gm, respectively. The metal was last seen above Rs 13,000-mark on December 1 when prices stettled at Rs 13,010 per 10 gm in Mumbai bullion market.
    However, higher prices kept retail buyers away from the shop despite ongoing marriage season, a bullion merchant said in Mumbai. But it is not the domestic demand that is driving prices now. Bullion dealers said the firm international prices, which is a combined result of the US economic recession and a slide in dollar value against the euro,
are the main reason for the rally in gold market.
    In international markets, yellow metal gained more than 1% on Wednesday on dollar weakness in the wake of the US Federal Reserve's decision to slash interest rates to between zero and 0.25%.
    In Kolkata, the yellow metal rose by Rs 145 to Rs 13,270 per 10 gm. While in Delhi it rose by Rs 20 to touch Rs 13,110 per 10 gm, it scaled Rs 13,000 per 10 gm in Chennai. In London, spot gold rose to $871.30/873.30 an ounce, a two-month high, up from $857.35 on Tuesday in New York. Meanwhile, US gold futures for February delivery too became dearer by
$32.50 at $875.20 an ounce.
Meanwhile, demand for silver improved substantially as jewellers and gift items manufacturers turned active buyers to meet demand for Christmas and New Year celebrations. Ready silver gained the most in Chennai, where the metal closed Rs 595 higher at Rs 18,465 per kg. While in Kolkata the white metal surged by Rs 460 to Rs 17,850, it traded Rs 445 higher at Rs 17,815 per kg. Delhi markets saw a gain of Rs 350 as the metal settled at Rs 17,600 per kg. In international markets, London silver rose to $11.44/11.52 an ounce from $11.21.