Friday, July 8 2005 12:48 Hrs (IST) - World Time -

New Delhi: Both the precious metals, gold and silver, prices spurted on the bullion market in late trading yesterday (July 7, 2005) on panic buying after reports of explosions in London and pressure of crude oil prices touching record high.

The business activity turned bullish soon after reports of explosions in the London tube rail and a bus and the crude oil in the overseas markets gone high to a record of 61.80 dollar a barrel, boosting the appeal of the metal as a hedge against inflation.

Gold becomes more appealing for some investors when inflation erodes the value of fixed-income assets, such as bonds. High oil prices tend to stimulate the gold price because people expect higher inflation.

In Delhi, gold and ornaments started Rs.15 higher, each on concerns of rising oil prices, gained further ground on explosions in London and added Rs.15 more to quote at Rs.6125 and Rs.5975 per ten gram respectively in the late trading.

The local parties were also aggressive buyers in sovereign, which remained unaltered during the day, gained Rs.25 at Rs.5150 per piece of eight gram.

Similarly, silver ready commenced Rs.200 higher, rose further by Rs.50 to close at Rs.10,650 per kilo. Silver ready, after day's gain of Rs.75, added Rs.50 more in the evening to trade at Rs.10,575 per kilo.

Silver coins after initial gains of Rs.100, added Rs.100 further to quote higher at Rs.14,500 for buying and Rs.14,600 for selling of 100 pieces.

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