Gold found support in weaker US dollar and firm tone in oil prices. In London spot market gold was offered $4.85 at $653.60 per troy ounce.

According to the Bank for International Settlements (BIS) the number of exchange traded contract have soared from less than 2 billion worth a notional $400 trillion in 2000 to current levels of around 8 billion contracts worth $1,600 trillion.

US jewellery sales rose 7.0 percent to $63 billion in 2006, as compared to $58.9 billion in 2005.

Comex warehouse stocks remained almost unchanged at 7,490,913 ounces.

Silver prices trended firm aide by stronger oil and firm trend in gold. In London spot market silver quoted 18 cents higher at $13.65 per troy ounce. Comex March silver edged 17 cents up to $13.735 an ounce in the electronic trade.

In 2006, approximately 1,100 tonnes (1,230 tonnes in 2005) of silver with an estimated value of nearly $400 million were produced in the United States. Approximately 1,000 tonnes of silver was recovered from old and new scrap in 2006.

Comex warehouse stocks gained 591,113 ounces to 114,490,361 ounces.