Gold prices spurted by Rs 400 to trade at Rs 26,950 per 10 grams at the bullion market today after the precious metal climbed above USD 1,200 an ounce in Singapore amid increased buying by jewellers to meet seasonal demand.
Silver also recorded a significant rise of Rs 950 to Rs 38,750 per kg on increased offtake by industrial units and coin makers.
Bullion traders attributed the sharp rally in gold prices to a firming trend in overseas markets as Middle-East unrest boosted demand for safe-haven.
Besides, festive season buying by retailers, weakness in the rupee against the dollar and shifting of funds from falling equity markets influenced precious metal prices, they said.
Markets remained closed yesterday as traders refrained from doing business to protest the Budgetary proposal to make PAN must for buying gold worth over Rs 1 lakh.
Gold in Singapore, which normally determines price trend on the domestic front, rose by 0.5 per cent to USD 1,201.60 an ounce, the highest price since March 5 and silver by 0.6 per cent to USD 17.07 an ounce.
In the national capital, gold of 99.9 and 99.5 per cent purity jumped by Rs 400 each to Rs 26,950 and Rs 26,800 per 10 grams, respectively.
Sovereign followed suit and rose by Rs 100 to Rs 23,700 per piece of eight grams.
Tracking gold, silver ready prices went up by a whopping Rs 950 to Rs 38,750 per kg and weekly-based delivery by Rs 790 to Rs 38,570 per kg.
Silver coins also flared up by Rs 1,000 to Rs 57,000 for buying and Rs 58,000 for selling of 100 pieces.