Brisk seasonal demand pushes gold to one-month high

MUMBAI: Gold prices surged to a one-month high and closed above the psychologically important Rs 27,000 per 10 gm at the domestic bullion market today following heavy stockists demand in the face of upcoming festivities amid robust investment offtake.

Elsewhere, silver maintained its rallying momentum owing to frantic speculative activity as well as increased industrial buying.

Standard gold (99.5 purity) strengthened by Rs 185 to conclude at Rs 27,150 per 10 grams as compared to Monday's level of Rs 26,965.

Pure gold (99.9 purity) also jumped by a similar margin to settle at Rs 27,300 per 10 grams from Rs 27,115.

Silver (.999 fineness) rose by Rs 170 to finish at Rs 39,640 per kg against overnight level of Rs 39,470.

Globally, the shining metal continued its strong rallying momentum on safe-haven demand amid hectic short-covering following sell-off in equity markets across the globe alongside the building evidence of Europe slipping back into recession.

Spot gold was bid higher at $1,234.05 an ounce in early European trade.