Yellow metal flared up and reclaimed the Rs28,000 per 10 grams level at the domestic bullion market on Friday following a flurry of buying activity from jewellery stockists and investors in the midst of a strong global rally.
Silver also witnessed a robust pull-back to revisit the Rs45,000 per kg mark on heavy speculative offtake.Domestic sentiment turned highly bullish after the yellow-metal soared to multi-month high in overseas trade which propelled bullion traders to go long, triggering the dramatic rally to mark the biggest one-day gain in this calender year amid expectations of further upside against the backdrop heightened disturbance in Iraq.
Standard gold (99.5 purity) shot up by Rs 580 to finish at Rs28,150 per 10 grams from Thursday's closing level of Rs27,570.Pure gold (99.9 purity) also jumped by the same margin to end at Rs28,300 per 10 grams from Rs27,720.Silver (.999 fineness) soared by Rsper kg to conclude at Rs 45,050 per kg as against Rs43,365 yesterday.
Globally, in a striking display the shiny metal powered to reclaim the psychologically-significant $1,300 an ounce mark as ongoing turbulence in Iraq fuelled investors' renewed focus towards gold as save-haven demand amid bargain hunting after a two-month slump.The Federal Reserve's decision earlier in the week to keep benchmark interest rates at rock-bottom levels for the foreseeable future also supported the upside momentum in the precious metal.
Gold for August delivery zoomed to settle at $ 1,314.10 an ounce on the Comex division of the NYMEX late yesterday, while silver rose to $ 20.65 an ounce.