MINING.COM Staff Writer

Both gold and silver gained on the bullion market on Saturday as bargain hunters returned to the market. While gold surged by Rs 420 to Rs 28,160 per 10 grams, silver went up by Rs 1,100 to Rs 64,400 per kg. Trading sentiment in Mumbai improved after gold rose the most in a week on Friday in New York. However, many analysts say the gold price could continue to weaken into next week possibly going as low as $1,700/oz as indicated by technical chart patterns that have turned bearish, investors turning to riskier assets like shares, the dollar gains further and concerted efforts to shore up Europe's banks may begin to show fruit. Volatility in the gold market is increasing and the gap between gold’s highs and lows this year, have reached more than $600, the largest since the 1960s.

Sify reports rampant extraction of iron ore for export was steadily eating away India's national wealth, retired Supreme Court judge M.B. Shah, who heads a commission probing illegal mining in several states, said Saturday. Justice Shah is probing unlawful mining in Goa, Orissa, Chhattisgarh, Andhra Pradesh and Karnataka. His team has been camping in Goa for the last two days – visiting mining leases, interviewing bureaucrats and inspecting documents, related to the more than 100 operational iron ore mines in the state. Justice Shah, who heads the nine-member commission, would be submitting a comprehensive report on the Goa mining scandal to the central government within 45 days.