Gold and silver zoomed to end at new historic highs of Rs 9,500 and Rs 22,950 respectively on the Bullion market in Mumbai on Thursday, due to persistent hectic stockists and speculative buying after a steep rally in global prices.
Some dealers termed the present heavy buying as speculative and there was virtually no physical buying.
"Stockists and speculators are buying both gold and silver in large quantity fearing the prices in the global market will continue to rise sharply for some more time," a dealer said.
Meanwhile, jewellers said there was a steep fall in demand for jewellery. "Jewellery buying has fallen by 50 per cent after steep rise in gold prices in the international market", a jeweller said.
Standard gold (99.5 purity) opened sharply higher at Rs 9,420 and shot up further on increased buying, before ending at Rs 9,500, revealing a steep rally of Rs 285 over Wednesday's close of Rs 9,215.
Pure gold (99.9 purity) also resumed firm at Rs 9,465 and after rising further sharply, ended at Rs 9,560, revealing a steep rally of Rs 290 over Rs 9,270 on Wednesday.
In the overseas market, gold advanced for a fifth consecutive day to hit the highest level in 25 years as investors bought bullion on concern that higher global energy costs may spur inflation.
Gold rose smartly by $4.81 to $645.01 an ounce in London, the highest since November, 1980, dealers said.
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