Gold climbs by Rs330 per ten grams

Gold climbs by Rs330 per ten grams

Mumbai: Gold prices spurted by Rs330 per ten grams to Rs13,490 in early trade on the bullion market on Tuesday on sustained demand from stockists triggered by positive global cues and a sharp fall in equity markets.

Silver also advanced further in line with a firm trend in the yellow metal as well as on mild industrial demand.

Gold futures traded near the highest in two months in global market after the US House of Representatives rejected a $700 billion bailout plan for the banking system.

Investors were believed to be shifting their funds into gold as safe-haven investment from falling equity markets.

Stocks plunged in Asia today as fears of escalating financial turmoil triggered panic selling on world markets after US policymakers unexpectedly shot down a financial rescue plan.

In the local market, standard gold (99.5 purity) shot up by Rs330 per ten grams to Rs13,490 from yesterday’s closing level of Rs13,160. Pure gold (99.9 purity) rose to Rs13,545 from Rs13,225.

Silver ready also moved up to Rs21,210 from Rs21,185 previously.