Gold prices staged a smart rally and hit a nine-month high at the domestic bullion market today on strong buying from stockists amid jewellery and investment demand in the backdrop of surge in global commodity market.
Silver also surged and retraced the key Rs 54,000 per kg mark on heavy speculative as well as industrial demand.
Standard gold of 99.5 per cent purity shot up by Rs 630 to conclude at Rs 31,790 per 10 gm from Friday's closing level of Rs 31,160.
Pure gold of 99.9 per cent purity jumped by Rs 635 to end at Rs 31,945 per 10 gm from Rs 31,310.
Silver ready (.999 fineness) zoomed by a massive Rs 2,260 to finish at Rs 54,260 per kg from its previous closing level of Rs 52,000.
After a few days of consolidation in the midst of global uncertainty due to concerns over US Federal Reserve tapering its easy money policy, stockists and jewellery makers began taking position to meet the robust festive and wedding season demand for the yellow metal.
Globally, gold vaulted by a hefty USD 25 gain to touch a two-month high after weaker-than-expected housing and jobless claims data in US led to speculation that the Fed is likely to keep its bullion-friendly stimulus measures for longer than expected period.
In New York, gold for December delivery rose to end at USD 1,395.80 an ounce on the Comex division of the NYMEX late yesterday. September silver contract also gained and settled at USD 23.74 an ounce.