New Delhi: Gold prices soared by 600, its biggest one-day surge this year, to trade at its highest level in more than three weeks at 26,000 per ten grams on Wednesday, tracking uptrend in the global bullion market and on a seasonal pick up in demand from jewellers and retailers.

The precious metal again topped $1,100 an ounce mark in the global market. The depreciation in rupee, which plunged to almost two-year low against the dollar, also supported the upside in the global prices as it would make imports costlier.

In the forex market, rupee was trading 75 paise lower at 64.94 (intra-day) against the American currency. Silver also rose sharply by 640 to 35,700 per kg on increased offtake by industrial units and coin makers. Bullion traders said sentiment got a boost after gold rallied to three-week high in global markets following China’s devaluation of its currency for the second straight day, spurring demand for safe-haven assets.

Gold in Singapore, which mostly sets the price trend in the Indian market, was trading 0.6% higher at $1,115.48 an ounce. In the national capital, gold of 99.9% and 99.5% purity zoomed up by 600 each to 26,000 and 25,850 per ten grams respectively, a level last seen on 18 July. The precious metal had gained 420 in the previous four days.

Sovereign gold followed suit and shot up by 200 to 22,400 per piece of eight gram. Following gold rally, “silver ready" recorded a hefty rise of 640 to 35,700 per kg and weekly-based delivery by 450 to 35,410 per kg. Silver coins also spurted by 2,000 to 51,000 for buying and 52,000 for selling of 100 pieces.

Close