Gold prices jumped by Rs 130 to close at Rs 13,330 per 10 gram in the bullion market here on buying by stockists and investors as melting stock market boosted the demand for the precious metal as a safe haven.
Marketmen said gold, which had lost Rs 210 yesterday, gained ground today as the falling stocks and depreciating rupee prompted investors to park their funds in bullion.
Silver also remained in better form and gained Rs 50 per kg on sustained buying by coin manufacturers, they said.
The benchmark Sensex tanked over 670 points to close below 11,000 levels on across-the-board selling by funds and general investors.
Firming prices of gold in the international markets and rising demand due to festival and marriage season also boosted the sentiment, they said.
Gold in London rose by 9.17 dollars to 845.88 dollars an ounce. Futures for December added 8.40 dollars to 847.90 dollars an ounce in the New York Mercantile Exchange.
In the domestic market, standard gold and ornaments shot up by Rs 130 each to Rs 13,330 per 10 gram and Rs 13,180 per 10 gram respectively. Sovereign rose by Rs 100 to Rs 10,700 per piece of eight gram.
Silver ready rose by Rs 50 to Rs 18,800 per kg, while weekly-based delivery gained Rs 100 at Rs 18,900 per kg.
Silver coins prices jumped by Rs 200 at Rs 28,500 for buying and Rs 28,600 for selling of 100 pieces.
