Gold Hits Two-week High of Rs 28,680 on Strong Global Cues

New Delhi:

Gold prices surged by Rs 480 to hit a two-week high of Rs 28,680 per 10 grams in the national capital on Friday, recording their second biggest single-day rise this year.

Besides, rising demand from jewellers and stockists also supported the upside, traders said.

Silver also spurted by Rs 800 to Rs 46,000 per kg on increased offtake by industrial units and coin makers.

Sentiment turned better after gold traded at a nearly four-month high in global markets, as concern over Europe's economy and rising tension in the Middle East boosted safe haven demand.

Gold in global markets, which normally sets price trend on the domestic front, rose 0.2 per cent to $1,338.99 an ounce in Singapore. The metal had rallied to $1,345.17 on Thursday - its highest since March 19.

Silver also rose 0.20 per cent to $21.44 an ounce.

In Delhi, gold of 99.9 and 99.5 per cent purity climbed by Rs 480 each to Rs 28,680 and Rs 28,480 per 10 grams, respectively - a level last seen on June 26. Sovereign, however, held steady at Rs 24,900 per piece of 8 grams.

The precious metal had recorded its biggest single-day rise of Rs 605 on June 20 this year.

In a similar fashion, silver ready rose by Rs 800 to Rs 46,000 per kg and weekly-based delivery by Rs 1,095 to Rs 46,140 per kg.

On the other hand, silver coins maintained a steady trend at Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces in restricted buying activity.