Gold prices on Tuesday regained the Rs28,000-mark by soaring Rs710 -- its biggest single-day surge this year -- to trade at its highest level in over one-year on bullish trend in global markets and buying by jewellers.
The precious metal had gained Rs825 in the last eight days.
Depreciating rupee against the dollar that made the imports costlier and shifting of funds from weakening equity to bullion also supported the upside.
Silver also reclaimed the Rs37,000-mark by rising whooping Rs1,180 to Rs37,230 per kg on increased offtake by industrial units and coin makers.
Bullion traders said sentiment got a boost after gold rallied for an eighth straight day topping $1,200 an ounce for the first time since June in global markets as increased concern about the state of the global economy hurt equity markets and boosted demand for safe haven assets.
Globally, gold rose 0.5 per cent to $1,195.66 in Singapore. The metal jumped to $1,200.97 an ounce yesterday, the highest since June 22.
In the national capital, gold of 99.9 and 99.5 per cent purity zoomed by Rs710 each to Rs28,585 and Rs28,435 per ten gram respectively, a level last seen on January 21, 2015.
Sovereign followed suit and jumped up by Rs200 to Rs22,900 per piece of eight gram.
Following gold rally, silver ready also registered a hefty gain of Rs1,180 to Rs37,230 per kg and weekly-based delivery by Rs1,110 to Rs37,200 per kg.
Silver coins also spurted by Rs1,000 to Rs53,000 for buying and Rs54,000 for selling of 100 pieces.