Gold prices soared by Rs 600, its biggest one-day surge this year, to trade at its highest level in more than three weeks at Rs 26,000 per ten grams today, tracking uptrend in the global bullion market and on a seasonal pick up in demand from jewellers and retailers.
The precious metal again topped USD 1,100 an ounce mark in the global market.
The depreciation in rupee, which plunged to almost two-year low against the dollar, also supported the upside in the global prices as it would make imports costlier.
In the forex market, rupee was trading 75 paise lower at 64.94 (intra-day) against the American currency.
Silver also rose sharply by Rs 640 to Rs 35,700 per kg on increased offtake by industrial units and coin makers.
Bullion traders said sentiment got a boost after gold rallied to three-week high in global markets following China’s devaluation of its currency for the second straight day, spurring demand for safe-haven assets.
Gold in Singapore, which mostly sets the price trend in the Indian market, was trading 0.6 per cent higher at USD 1,115.48 an ounce.
In the national capital, gold of 99.9 and 99.5 per cent purity zoomed up by Rs 600 each to Rs 26,000 and Rs 25,850 per ten grams respectively, a level last seen on July 18.
The precious metal had gained Rs 420 in the previous four days.
Sovereign gold followed suit and shot up by Rs 200 to Rs 22,400 per piece of eight gram.
Following gold rally, ‘silver ready’ recorded a hefty rise of Rs 640 to Rs 35,700 per kg and weekly-based delivery by Rs 450 to Rs 35,410 per kg.
Silver coins also spurted by Rs 2,000 to Rs 51,000 for buying and Rs 52,000 for selling of 100 pieces.