Gold prices spurt by Rs 565 to two-month high

Gold prices on Friday soared by Rs 565 to trade at over two-month highs around Rs 27,885 per 10 grams at the bullion market on brisk buying by jewellers and retailers to meet wedding season demand amidst a firming trends overseas.

Silver also rose sharply by Rs 620 to Rs 37,900 per kg on increased offtake by industrial units and coin makers.

Bullion traders said sentiment turned better after gold rallied to the highest since September in global markets as the dollar weakened after Switzerland decoupled its currency to the euro and lowered the deposit rate.

Gold in New York, which mostly set the price trend on the domestic front, jumped up by $33.50, or 2.73 per cent, to $1,262.60 an ounce  and silver by 0.68 per cent to $16.96 an ounce in Thursday's trade.

In the national capital, gold of 99.9 and 99.5 per cent purity zoomed up by Rs 565 each to Rs 27,885 and Rs 27,685 per 10 grams respectively, a level last seen on October 22.

Sovereign followed suit and edged up by Rs 50 to Rs 23,900 per piece of 8 grams.

Following gold, silver ready recorded a sharp rise of Rs 620 to Rs 37,900 per kg and weekly-based delivery by Rs 540 to Rs 37,840 per kg.

Silver coins also flared up by Rs 1,000 to Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.