Gold hits 28-month high above Rs 31,000 mark as Brexit fears return

Gold prices shot up to Rs 31,050 per 10 grams, a 28-month high, by surging Rs 400 in the bullion market on Wednesday, underpinned by risk-off attitude among investors and positive global cues.

Pick-up in jewellers' buying in domestic markets came as a shot in the arm.

Silver spurted Rs 750 to regain the crucial Rs 47,000 per kg mark on increased offtake by industrial units and coin makers.

According to traders, fears of Brexit impact resurfaced, which led to a firming global trend in gold. So much so that the prices climbed to the highest in more than two years as investors, worried about the global economic outlook, sought refuge in the precious metal.

Globally, gold advanced 1.1% to $1,371.39 an ounce, the highest level since March 2014, and silver increased 2.4% to $20.41 an ounce in Singapore.

In the national capital, gold of 99.9% and 99.5% purity soared Rs 400 each to Rs 31,050 and Rs 30,900 per 10 grams, respectively, a level last seen on March 12, 2014 when it stood at Rs 31,020.

Sovereign, however, held steady at Rs 23,400 per piece of eight grams.

In line with gold, silver ready rebounded Rs 750 to Rs 47,400 per kg, and weekly-based delivery traded higher by Rs 215 at Rs 46,515 per kg.

Silver coins, however, continued to be traded at the previous level of Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.