Gold surges Rs 710 to top Rs 28,000-level, hits one-year high

Gold prices have regained the Rs 28,000-mark by soaring Rs 710 - its biggest single-day surge this year - to trade at its highest level in over one-year on bullish trend in global markets and buying by jewellers. The precious metal had gained Rs 825 in the last eight days. Depreciating rupee against the dollar that made the imports costlier and shifting of funds from weakening equity to bullion also supported the upside.

Silver also reclaimed the Rs 37,000-mark by rising a whooping Rs 1,180 to Rs 37,230 per kg on increased offtake by industrial units and coin makers. Bullion traders said sentiment got a boost after gold rallied for an eighth straight day topping USD 1,200 an ounce for the first time since June in global markets as increased concern about the state of the global economy hurt equity markets and boosted demand for safe haven assets. Globally, gold rose 0.5 percent to USD 1,195.66 in Singapore.

The metal jumped to USD 1,200.97 an ounce yesterday, the highest since June 22. In the national capital, gold of 99.9 and 99.5 percent purity zoomed by Rs 710 each to Rs 28,585 and Rs 28,435 per ten gram respectively, a level last seen on January 21, 2015. Sovereign followed suit and jumped up by Rs 200 to Rs 22,900 per piece of eight gram.

Following gold rally, silver ready also registered a hefty gain of Rs 1,180 to Rs 37,230 per kg and weekly-based delivery by Rs 1,110 to Rs 37,200 per kg. Silver coins also spurted by Rs 1,000 to Rs 53,000 for buying and Rs 54,000 for selling of 100 pieces.