Gold surges by Rs 205 on global cues, higher demand

Mumbai: Continuing its upward trend, gold prices surged by another Rs 205 to close at Rs 27,900 per 10 grams here today on demand from investors, stockists as well as higher local buying interest amid bullish global sentiment.

Silver also edged-up following mild industrial buying.

In Europe, gold hit a two-week high on weaker dollar and was set to close 2016 more than 9 per cent higher, snapping three years of declines.

Standard gold (99.5 purity) surged by 205 per ten grams to close at Rs 27,900 from the previous closing level of Rs 27,695.

Pure gold (99.9 purity) also climbed by a similar margin to end at Rs 28,050 from Rs 27,845 per 10 grams.

Silver (.999 fineness) moved-up by Rs 65 per kg to conclude at Rs 39,930 from Rs 39,865.

In London, Spot gold was up 0.1 per cent in early trade at USD 1,158.86 an ounce. While, spot silver gained 0.2 per cent at USD 16.18 an ounce.