Silver also surged by Rs 2,300 to Rs 58,300 per kg on increased offtake by industrial units and speculators. Trading sentiment turned bullish as gold rallied in global markets as European leaders agreed on a plan to contain the region's debt crisis.
Gold in global markets, which normally sets the price trend on the domestic front, gained 0.5 per cent to USD 1,752.82 an ounce, the highest level since September 23. In addition, pick-up in demand driven by the festive season was another factor behind the rise in gold prices, traders said.
On the domestic front, gold of 99.9 and 99.5 per cent purity rose by Rs 110 each to Rs 28,000 and Rs 27,860 per 10 grams, respectively, while sovereigns held steady at Rs 22,200 per piece of eight grams. Similarly, silver ready spurted by Rs 2,300 to Rs 58,300 per kg and weekly-based delivery by Rs 2,280 to Rs 57,780 per kg.
However, silver coins maintained previous level of Rs 65,000 for buying and Rs 66,000 for selling of 100 pieces in limited deals.