Silver drifts on profit-taking, gold moves up

Mumbai: Silver prices continued to slid at the domestic bullion market here on Tuesday due to persistent offloading from stockists and traders despite bullish European cues.

While, gold gained marginally owing to renewed local buying support coupled with investment demand.

Silver ready (.999 fineness) dropped by Rs 345 per kg to close at Rs 53,405 from Monday`s closing level of Rs 53,750.

However, standard gold (99.5 purity) edged up by Rs 10 per 10 grams to finish at Rs 21,955 from Rs 21,945 yesterday.

Pure gold (99.9 purity) also looked up by a similar margin to settle at Rs 22,055 as compared to Rs 22,045 previously.

In Europe, gold strengthened as dollar retreated from a seven-week high against the euro amidst growing concerns over euro zone debt crisis, rising demand for the metal as a haven bet.

Spot gold was bid at USD 1,494.69 an ounce in early trade as against USD 1,489.20 late in New York on Monday. US gold futures for June delivery rose by USD 3.50 an ounce to USD 1,494.10.

Silver was bid at USD 34.08 an ounce as compared to USD 33.56 previously.