Mumbai: Gold prices shot up further at the bullion market here on Tuesday on renewed demand from stockists and speculators triggered by a steep rise in European markets.
Moving in tandem with gold prices, silver too firmed up due to higher off-take from industrial units.
The rising trend was also boosted by strong local buying interest amidst seasonal demand.
Standard gold (99.5 purity) spurted by Rs160 per ten grams to end at Rs16,710 from overnight closing level of Rs16,550.
Pure gold (99.9 purity) rose by a similar margin of Rs160 per ten grams to close at Rs16,795 as against Rs16,635 on Monday.
Silver ready (.999 fineness) hardened by Rs240 per kilo to conclude at Rs25,400 from Rs25,160.
In London, gold prices rallied to a two-week high after the dollar weakened against basket currencies.
Spot gold was bid at $1,113.80 an ounce in early trade as against $1,100.50 late in New York on Monday.
US gold futures for April delivery gained by $24.20 to $1,113.70 an ounce on the Comex division of the NYMEX.
Silver was bid at $15.77 an ounce as against $15.52.