Mumbai: Gold staged a smart rally and hit a nine-month high at the domestic bullion market today on strong buying from stockists amid jewellery and investment demand in the backdrop of surge in global commodity market.
Standard gold of 99.5 percent purity shot up by 630 to conclude at 31,790 per 10 gm from previous closing level of 31,160.
Pure gold of 99.9 percent purity jumped by 635 to end at 31,945 per 10 gm from 31,310.
Silver ready (.999 fineness) zoomed by a massive 2,260 to finish at 54,260 per kg from its previous closing level of 52,000.
After a few days of consolidation in the midst of global uncertainty due to concerns over U.S. Federal Reserve tapering its easy money policy, stockists and jewellery makers began taking position to meet the robust festive and wedding season demand for the yellow metal.
Globally, gold vaulted by a hefty $25 gain to touch a two-month high after weaker-than-expected housing and jobless claims data in U.S. led to speculation that the Fed is likely to keep its bullion-friendly stimulus measures for longer than expected period.
In New York, gold delivery rose to end at $1,395.80 an ounce on the Comex division of the NYMEX. September silver contract also gained and settled at $23.74 an ounce.