Gold regains Rs 30k level on strong festive demand

Gold on Wednesday regained the psychological level of Rs 30,000 per 10 grams on brisk buying by stockists and jewellers to meet the demand for the upcoming festive season amid a firming global trend.

While gold shot up by Rs 260 to Rs 30,160 per 10 grams, a level last seen on July 9, silver rose by Rs 100 to Rs 52,650 per kg on increased offtake.

The trading sentiment bolstered on rising demand among retail customers for coming festivals like 'Rakshabandhan' and investors shifting funds from melting stocks to bullion.

The market also supported after gold gained in overseas markets on deepening euro-zone

debt crisis, spurring demand for the metal as an alternative investment.

In London, gold rose by 0.5 per cent to $1,589 an ounce and silver by 0.2 per cent to $27.02.

On the domestic front, gold of 99.9 and 99.5 per cent purity jumped up by Rs 260 each to Rs 30,160 and Rs 29,960 per 10 grams, respectively.

Sovereigns followed suit and gained Rs 50 to Rs 24,450 per piece of eight grams.

Similarly, silver ready rose by Rs 100 to Rs 52,650 per kg and weekly-based delivery by Rs 185 to Rs 52,970 per kg.

Silver coins also spurted by Rs 1,000 to Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces on account of festive demand.