Gold price up on heavy stockists offtake

Gold continued its rallying momentum at the domestic bullion market on the back of strong uptick by jewellery stockists and retailers, amid robust local buying support ahead of upcoming festivities. Elsewhere, silver also strengthened due to frantic speculative buyout coupled with firm industrial buying. Standard gold (99.5 purity) surged by Rs 370 to end at Rs 27,520 per 10 grams from Tuesday's level of Rs 27,150.

Pure gold (99.9 purity) also spurted by a similar margin to conclude at Rs 27,670 per 10 grams compared with Rs 27,300. Silver (.999 fineness) added by Rs 180 to conclude at Rs 39,820 per kg against Rs 39,640 previously. On the global front, the yellow metal shot up to a one- month high driven by robust investment buying and also good short-covering, after a string of disappointing US data eased concerns for an early rate hike by the Federal Reserve.

Mounting worries over faltering global growth and the subsequent sell-off in equities worldwide also supported demand for the safe-haven asset. Gold for December delivery climbed to USD 1,244.80 an ounce on the Comex division of the NYMEX late yesterday, while silver gained to USD 17.46 an ounce.