Robust festive season buying propels gold to five-year high of Rs 31,900

Disappointing short-term returns in other investment options, including equities, has prompted investors to take advantage of the current low gold prices abroad

The price of standard gold hit its highest in five years at Zaveri Bazaar here, following a sharp increase in the international market and robust consumer demand this festive season.

Data from the India Bullion and Jewellers Association (Ibja) showed standard gold was at Rs 31,900 per 10g in the spot bullion on Monday, up nearly 0.6 per cent from its previous close of Rs 31,735 per 10g. The rise has been on for four days in a row.

Silver also rose here, to trade at Rs 38,540 a kg.

The jump in gold indicates renewed consumer interest as a