Gold glitters with second biggest gain in 2011

Gold today zoomed by Rs 1,025, its second biggest rise this year, to Rs 28,990 per 10 grams, on brisk buying by stockists and investors amid a firming global trend and shifting of funds to the precious metal from volatile equity and forex markets.

The rise in the yellow metal's prices is the highest since August 19, 2011, when it had increased by Rs 1,310.

Silver followed suit and rose by Rs 750 to Rs 53,000 per kg on increased offtake by industrial units and coin makers, besides rising trend in international markets due to the weakening US dollar.

The trading sentiment bolstered as gold in overseas markets advanced to the highest level in a week after better than expected economic data from the US and Germany reduced demand for the dollar as a haven investment, market experts said.

Gold in global markets, which normally sets the price trend on the domestic front, gained 0.8% to $1,628.30 an ounce in Singapore, the highest price since December 14.

On the domestic front, gold of 99.9 and 99.5% purity shot up by Rs 1,025 each to Rs 28,990 and Rs 28,840 per 10 grams, respectively. Sovereigns rose by Rs 100 to Rs 23,300 per piece of eight grams.

In a similar fashion, silver ready jumped up by Rs 750 to Rs 53,000 per kg and weekly-based delivery by Rs 780 to Rs 53,630 per kg. Silver coins surged by Rs 3,000 to Rs 60,000 for buying and Rs 61,000 for selling of 100 pieces.