Gold prices regained the crucial level of Rs 29,000 per 10 gram,shooting up by Rs 700 its biggest single day gain this year — in the bullion market here today on strong cues from overseas market.
Gold gained Rs 700 to Rs 29,320 per 10 grams,a level last seen on May 8. Silver prices too spurted by Rs 1,400 to Rs 54,000 per kg on increased offtake by industrial units and coin makers.
Traders said sentiment turned bullish after gold rose by 0.9 per cent to USD 1,587.85 in London as concerns over deepening eurozone debt crisis spurred the demand for the metal as a protection of wealth.
Silver prices also rose by 1.2 per cent to USD 28.38 an ounce in London.
Trend in the overseas market normally sets a price in the domestic market,they added.
Further,shifting of money by investors from volatile equity markets to rising bullion also pushed up the precious metals’ prices.
Back home,gold of 99.9 and 99.5 per cent purity gained Rs 700 each at Rs 29,320 and Rs 29,180 per 10 grams,respectively.
Sovereign followed suit and rose by Rs 100 to Rs 23,750 per piece of eight grams.
Silver ready gained Rs 1,400 to Rs 54,000 per kg and weekly-based delivery rose by Rs 1,200 to Rs 53,750 per kg.
Silver coins followed suit and jumped by Rs 3,000 to Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.