Gold zooms to touch 28-year high

Gold prices surged in the bullion market today on aggressive buying by stockists and jewellery fabricators triggered by reports of the precious metal in overseas markets touching 28-year high levels.

The yellow metal gained Rs 75 at Rs 9,595 per ten gram despite the ongoing "Shraddh",- an inauspicious fortnight during which Hindus do not indulge in buying.

Gold in London shot up to 740 dollar an ounce, a level last seen in January 1980 when the US inflation rate rose to record heights.

Silver also moved up on increased offtake from industrial users and higher overseas advices.

Marketmen said gold across the world firmed up after the US Fed Reserve cut interest rates. Weakening dollar and rising crude prices also drove investors to park their funds in the bullion, which is considered a safe haven during market uncertainties.

Standard gold and ornaments shot up by Rs 75 each at Rs 9595 and Rs 9445 per ten gram respectively. Sovereign was unaltered at Rs 7800 per piece of eight gram.

Silver ready jumped up by Rs 160 at Rs 18,100 per kilo and weekly-based delivery by Rs 205 at Rs 18,340 per kilo. Silver coins were higher by Rs 100 at Rs 24,100 for buying and Rs 24,200 for selling of 100 pieces.