Mumbai, July 11: Both gold and silver today staged a remarkable rally and flared up on the bullion market here due to shortage of stocks in the wake of poor arrivals as against heavy demand from stockists.

The sharp rise is mainly attributed to higher premium for Special Import Licence which has rose from 11.10/11.15 per cent to 12 per cent. Secondly some of the bullion operators who had booked profit in the stock market were now active in the bullion market. Besides this, there is also rumour that local importers of bullion have formed cartel and they are not offering precious metals in the market after recent losses. This situation has created acute shortage of ready stock in the local market.

Silver ready .999 fineness opened higher at Rs.6310 and advanced further to close with a gain of Rs.105 at Rs.6370 per kilo as against its last close of Rs.6265. Raw silver .916 fineness and tenderable silver gained by a similar margin of Rs.105 and closed at Rs 6270 and Rs.6375 from the previous close of Rs.6165 and Rs.6270 respectively.

Standard gold opened higher at Rs.4420 and shot up further to close at Rs. 4470, showing a gain of Rs.85 from the previous close of Rs.4390 per 10 grams. Demand had picked up for the ensuing festivities while arrivals had reduced on account higher price trends in the international markets.

22-Carat gold ended with a gain of Rs.75 and was nominally quoted at Rs. 4135 from Rs.4060 previously. Ten-tola gold bar of .999 purity shot up by Rs.1000 to Rs.52,300 from its last close of Rs.51,300 on account of poor arrivals.

In the international market both the precious metals ruled steady. Gold maintained at $320/321 per ounce while silver placed at $4.35/4.37 per ounce.

Grains mixed

A mixed trend was in evidence in pulses on the grains market. Activity was limited.

Urad Myanmar price declined by Rs 50 a quintal on increased offering triggered by slack demand. Old were down to Rs 900-925 and new at Rs 1000. Kabuli gram Turkish A-2 price softened up by Rs 100 at Rs 1800. B-2 Turkish at Rs 1500, Iranian at Rs 1400 and C-2 at Rs 1275 shed Rs 50.

Rajma price firmed up on tight supply. Chitra deshi at Rs 2000 gained Rs 100. Imported were sought after at Rs 1900. Red rajma imported shot up by Rs 75 at Rs 1750. Green peas Rumba and Canadian were steady at Rs 1800-1850 and at Rs 1391-1400 respectively. Tur Myanmar old ruled at Rs 975-1000 while new were transacted at Rs 1050-1075.

Sugar quiet

A quietly steady condition prevailed on the sugar market. Volume of business was modest.

M-30 were placed at Rs 1450-1470 and S-30 at Rs 1425-1450 a quintal ex-octroi checkpost. Ex-godown, the price ruled at Rs 1480-1524 and S-30 at Rs 1455-1475 respectively.

There were very few tenders as most of the quota has been disposed off, averred trade sources. S-30 were indicated at Rs 1390-1400 in Kolhapur line.

Cotton lacklustre

In lacklustre trading prices hovered around the previous day's levels on the cotton market.

V-797 were placed at Rs 14,000-14,400, Morbi Wagad at Rs 12,800 and Kalagin at Rs 12,200-12,400 a candy spot. Sanker were traded in the range of Rs 17,500-21,000.

Yarn bullish

Bullish trend forged further ahead in polyesters on the yarn market following active demand.

80dn polyester yarn price moved up further under the lead of rotoset. The latter shot up from Rs 125-127 to Rs 130-135 on sustained buying support. This also encouraged Raliance Industries (RIL) to hike the price of 80dn roto by Rs 7 at Rs 135. 80dn weft at Rs 110 and warp at Rs 122-123 were up by Rs 2. 80/1000dn Surat goods at Rs 125-127, 241 machine at Rs 135-140 were up by Rs 5. 80/1400dn old machine at Rs 145-150 and 241 machine dat Rs 155-160 gained Rs 10. 150dn price ruled steady.Viscose filament yarns bright cones first quality Century Rayon 150dn ruled at Rs 207, 120dn at Rs 229, 100dn at Rs 251 and 75dn at Rs 257 a kg. 120dn dull cones were placed at Rs 245.

Nylon yarn JK 15/1/0dn and 20/1/0dn were indicated at Rs 220 and at Rs 211 respectively.