Gold soars to 1-mth high on global surge;silver touches Rs 38K

Mumbai, Dec 10: Gold prices surged to one-month high on the domestic bullion market today due to frantic buying by jewellery stockists and traders amidst strong seasonal offtake.

Elsewhere, silver also shot up to reclaim the key Rs 38,000-level following heavy speculative buyout as well as industrial demand.

A sharp rally in precious metals worldwide trade predominantly energised the domestic market sentiment along with depreciating rupee value against the dollar in the backdrop of ongoing wedding season, a bullion trader said.

Globally, the shiny metal zoomed to its highest level in seven weeks on massive short-covering rally as heightened political uncertainty in Greece and lower oil prices boosted the metals' safe-haven appeal.

Standard gold (99.5 purity) jumped by Rs 465 to conclude at Rs 26,905 per 10 grams from Tuesday's closing level of Rs 26,440.

Pure gold (99.9 purity) also climbed by a similar margin to end at Rs 27,055 per 10 grams, as against Rs 26,590. Silver (.999 fineness) skyrocketed by Rs 1,300 to finish at Rs 38,550 per kg compared to Rs 37,250 yesterday.

In London, spot gold was bid higher at USD 1,230.00 an ounce in early trade, while silver was up at USD 17.04 an ounce.

PTI