Aug 16, 2013, 09.08 PM | Source: PTI
Gold on Friday surged by Rs 1,310 per 10 gram here, the highest in two years, to Rs 31,010 on strong demand from stockists ahead of festive season.
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Gold has regained Rs 31,000 level after a gap of six months. An all-time high was Rs 32,975 per 10 gram on November 27, 2012, in Delhi bullion market.
Silver followed suit and spurted by Rs 3,270 to Rs 49,320 per kg, its biggest single day gain this year on rising demand from industrial units and coin makers.
Bullion traders attributed the sharp jump in gold prices to fear of tight supply following government's decision to hike import duty of silver and gold to narrow current account deficit (CAD).
The buying sentiment got bolstered as rupee hit record low of 62 against the US currency, making the dollar-denominated metal costlier.
Seeking to reduce gold imports, RBI also prohibited inward shipment of gold coins, medallions and dores without licence.
"Gold is back in demand as falling rupee and melting equities leaving no place for investor to park their funds," All India Sarafa Bazar vice president Surender Jain said.
He said a firming trend in overseas markets also supporting the bullion where as market hardly witness any physical buying.