Gold prices shoot up to hit Rs 30,000 level, a fresh 2-year high

Riding high on renewed buying frenzy, gold prices on Monday shot up to hit the psychological Rs 30,000 level, a fresh two-year high at the bullion hub here.

Strong return of local buying spirit along with robust wedding and festive-related jewellery demand mainly supported the bullish environment.

Aggressive buying from jewellery stockists and traders in view of the fast-approaching major gold-buying festival - Akshaya Tritiya also weighed on trade.

The domestic sentiment glittered the most and turned highly buoyant after the precious yellow-metal breached the key significant $1,300 an ounce mark in overseas trade following a ferocious blow of speculative buying activity in the midst of fading Fed rate hike expectations.

The ongoing rally in gold at the local market since the beginning of the year has been predominantly propelled by intensified speculations against the backdrop of jubilant sentiment overseas, a bullion trader said.

Elsewhere, silver also gained strength to strength to revisit the Rs 42,000-level on robust industrial offtake.

Standard gold (99.5 purity) skyrocketed by a whopping Rs 490 to finish at Rs 30,310 per 10 grams (the level not seen since April 25, 2014) from last Friday's closing level of Rs 29,820.

Pure gold (99.9 purity) also soared by a similar margin to conclude at Rs 30,460 per 10 grams compared to Rs 29,970.

Silver (.999 fineness) jumped by Rs 435 per kg to end at Rs 42,310 from Rs 41,875 previously.

In worldwide trade, spot gold traded substantially higher at $1,301.20 in early European session, while silver was firmly higher at $17.890 an ounce.