Gold rises to 3-month high on strong overseas surge

MUMBAI: Gold today staged a stunning turnaround and closed to the highest level in more than three months at the domestic bullion market as stockists and speculators went on a buying spree after a global commodity rally.

Silver also recouped most of its recent losses and regained the key important Rs 38,000 tag following heavy demand from traders and industrial users.

In the worldwide trade, the shiny metal sprinted to more than 2 per cent to hit multi-month high safe-haven buying after the Swiss National Bank lowered interest rates further into negative territory and also sliding equities.

Standard gold (99.5 purity) galloped by a whopping Rs 435 to conclude at Rs 27,470 from Wednesday's closing level of Rs 27,035.

Pure gold (99.9 purity) also jumped by a similar margin to end at Rs 27,620 per 10 grams as against Rs 27,185.

Silver (.999 fineness) zoomed by Rs 790 to finish at Rs 38,590 as compared to Rs 37,800 yesterday.

Spot gold was substantially high at $ 1,252.20 an ounce in early European trading.