Gold prices rose on the bullion market in New Delhi on Monday on emergence of buying by investors amid purchasing by stockists, as funds got diverted from falling equity markets.
Trading in gold turned bullish as major investors preferred to park their funds in the precious metals. The yellow metal rose by Rs 120 at Rs 5800 per ten gram.
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Traders said investors resorted to buying the precious metals as the stock market closed with the largest ever fall of 564 points on Monday in the worst-ever volatility even as the
BSE authorities suspended trading twice during the first half of the session in a bid to mitigate the damage.
They said despite low demand from jewellery fabricators due to off-marriage season, stockists were picking up fresh stocks on the back of strong international bullion markets.
Gold in overseas markets quoted at $381.70 an ounce from the previous level of 376, due to the falling US dollar.
Standard gold and ornaments which gained Rs60 in previous trading, shot up further on aggressive buying.
Silver ready zoomed by Rs 250 at Rs 9400 per kilo.