Bullion extends rally amid safe-haven demand

Silver and gold prices extended their rally for the second consecutive day in futures trade on Wednesday, following a steep correction last week, amid strong gains in the global markets and a weak US dollar. Silver for the March delivery jumped by Rs 16,853, or 6.29 per cent, to Rs 2,84,868 per kilogram.

The white metal snapped its three-day losing streak on Tuesday, soaring Rs 31,754, or 13.4 per cent, to close at Rs 2,68,015 per kg.

Gold futures also registered robust gains on the commodities bourse. The yellow metal for the April contract appreciated by Rs 5,868, or 3.82 per cent, to Rs 1,59,677 per 10 grams. In the previous session, the metal had jumped Rs 9,818, or nearly 7 per cent, to settle at Rs 1,53,809 per 10 grams.

“Gold and silver rebounded sharply after the steep selloff of the past few sessions, supported by a weaker dollar, though gains in domestic markets were capped by a softer USD/ INR,” Manav Modi, Commodities Analyst, Motilal Oswal Financial Services Ltd, said.