Gold surges on RBI measures, silver retraces 42,000

MUMBAI: Gold prices surged further at the bullion market here today on higher off-take by stockists and investors amid tough import provisions imposed by the apex bank propelling the rally.

Silver also climbed to hit the one-month high to retrace 42,000 per kg on high speculative buying as well as industrial demand.

The Reserve Bank of India late yesterday set fresh notification to tighten gold imports to check widening CAD.

The rule, were the banks or authorised agencies should assure 20 per cent of imported gold made available for exports which in-turn make the yellow-metal costlier.

Standard gold of 99.5 per cent purity advanced by Rs 395 to close at Rs 27,720 per 10 gm from Monday's closing level of Rs 27,325.

Pure gold of 99.9 per cent purity soared by a similar margin to finish at Rs 27,860 per 10 gm from Rs 27,465.

Silver ready (.999 fineness) rose by Rs 565 to end at Rs 42,450 per kg as against Rs 41,885 yesterday.

Globally, gold eased following gains in dollar, prompting investors to be cautious after the metal's biggest rise in previous session.

In London, spot gold was bid lower at USD 1,328.79 an ounce in early trade and silver bid down at USD 20.18 an ounce.