Gold zooms to 2-mth high on heavy buying, sinking equities

Gold prices rallied to their highest levels in more than two-months and closed above the psychologically important Rs 27,000-mark at the local bullion market here on emergence of frantic stockists and investment buying amid firm overseas sentiment.
Moving sympathy with the general trend, silver also short up further on the back of strong industrial offtake.
The domestic sentiment got a fillip following a sharp rebound in precious metals worldwide trade even as speculators built up long positions in the face of global uncertainty.
Shifting of investors funds from melting equities to bullion, further fuelled the uptrend, a trader said.
Meanwhile, Indian stock markets witnessed its worst crash in five and a half years following a rout in global financial markets amid speculation about probable exit of Greece from the Euro region.

On the global front, the shiny-metal reclaimed the USD 1,200-level supported by risk aversion in the equity markets as well as fears of renewed turmoil in eurozone against the backdrop of political uncertainty in Greece.

Standard gold (99.5 purity) spiked by Rs 440 to end at Rs 27,180 per 10 grams from Monday's closing level of Rs 26,740.
Pure gold (99.9 purity) also rose by a similar margin to conclude at Rs 27,330 per 10 grams compared to Rs 26,890.
Silver (.999 fineness) climbed by Rs 655 to finish at Rs 37,745 per kg as against Rs 37,090 yesterday.
Spot gold was substantially higher at USD 1,209.00 an ounce in early European trading after hitting a daily peak of USD 1,211.80.