Gold prices flare up in cityMUMBAI: Gold prices flared up further on a firm bullion market here today in the wake of brisk buying support prompted by strong advices from overseas markets. Attributing the sustained strength in the yellow metal to the announcement by 15 European central banks of their limited sales for the next five years, dealers said standard gold prices are expected to touch Rs 4850 during the forthcoming festival season. Silver prices also firmed up in line.Standard gold hardened further by Rs 135 to Rs 4535 from the overnight closing level of Rs 4400. 22-Carat gold also shot up by Rs 125 to Rs 4195 from Rs 4070 previously. Ten-tola gold bar (.999 purity) was quoted higher at Rs 53,250 as compared to Rs 51,500 yesterday. Silver spot (.999 fineness) shot up by Rs 70 to Rs 8270 from Rs 8200 previously. Raw-silver (.916 fineness) also rose by Rs 60 to end at Rs 8145 from Rs 8085 previously. Tenderable silver improved by Rs 70 to Rs 8275 from Rs 8205 yesterday.London goldprice touches $ 300LONDON: Gold jumped above $300 an ounce (28.35 grams) for the first time since last October as options-related buying added to short-covering gains made since European central banks pledged to curb official sales for five years. Spot gold was last at $303.80 versus Monday's New York close of $282.50, nearly 19 per cent above the $255.75 price Britain got for the 25 tonnes sold at auction exactly a week ago. The rapid rise in spot prices came as bullion banks scrambled to cover over-the-counter options positions written when gold was in the $250 only days ago. Over-the-counter options give holders the right but not the obligation to trade metal at a future price and date, a right for which they pay a premium.
