Gold zooms by Rs 685; hits over 1-month high on RBI measures

Gold today shot up by Rs 685 to hit an over one-month high of Rs 28,365 per 10 grams in the national capital region on brisk buying following the RBI imposing fresh import norms, amid firm global cues.
The precious metal, which had spurted by Rs 390 in the previous session, shot up further in today's trade to touch Rs 28,365, a level last seen on June 19.
The trading sentiment bolstered after the Reserve Bank yesterday set stringent conditions for importers, linking inward shipments to future exports, a decision that will make it costlier.
Under a notification, banks and authorised agencies will have to ensure that at least 20 per cent of imported gold is made available for exports.

The upsurge was further supported on a firming global trend where gold gained the most in more than a year on speculation the US Fed will maintain economic stimulus, boosting the appeal of the precious metal as a store of value.
With the general firming trend, silver also shot up by Rs 795 to Rs 42,120 per kg, in continuation to a rise of Rs 800 in the previous session on rising demand from industrial units and coin makers.

Gold in New York, which normally sets the price trend on the domestic front here, rose 3.3 per cent to USD 1,337.30 an ounce, the biggest gain since June 29, 2012.

In the national capital, gold of 99.9 and 99.5 per cent purity surged by Rs 685 each to Rs 28,365 and Rs 28,165 per 10 grams, respectively. Sovereigns also advanced by Rs 100 to Rs 24,400 per piece of eight grams.
In a similar fashion, silver ready jumped up by Rs 795 to Rs 42,120 per kg and weekly-based delivery by Rs 845 to Rs 42045 per kg respectively.
Silver coins sky-rocketed by Rs 2,000 to Rs 81,000 for buying and Rs 82,000 for selling of 100 pieces.