Gold at new high of Rs 28,540 on global cues

Gold surged to a fresh all-time high of Rs 28,540 per 10 grams in the bullion market today on sustained buying by stockists and investment-driven purchases fuelled by the bullish trend in international markets.

The trading sentiment remained bullish after gold rallied to fresh record levels in overseas markets as the global economic slowdown and European debt crisis boosted demand for bullion as a safe investment haven.

Gold in global markets, which normally sets the price trend on the domestic front, shot up by $34.20 to $1,887.30 an ounce.

A firming trend in the futures market, where gold jumped to a new record level, also fuelled the uptrend.

In the national capital, gold of 99.9% and 99.5% purity advanced by Rs 310 to Rs 28,540 and Rs 28,390 per ten grams, respectively. Sovereigns followed suit and gained Rs 100 to Rs 22,500 per piece of eight grams.

Trading in silver was closed today in observance of the 'Janmashtami' festival.