Gold spikes to near 5-month high on demand optimism

Gold maintained its bullish accent and prices spiked to a nearly five-month high at the bullion market here due to robust jewellery stockists offtake in the face of strong seasonal demand.

Elsewhere, silver rebounded sharply on the back of renewed speculative buying.

Standard gold (99.5 purity) surged by Rs 190 to conclude at Rs 27,940 per 10 grams from overnight closing level of Rs 27,750.

Pure gold (99.9 purity) also climbed by a similar margin to end at Rs 28,090 per 10 grams compared to Rs 27,900 yesterday.

Silver (.999 fineness) jumped by Rs 310 to finish at Rs 39,760 per kg from Monday's level of Rs 39,450.

In the worldwide trade, the shiny-metal rallied more than one per cent - its highest level since early September driven by safe haven demand amid expectations of extensive European Central Bank stimulus programme.

Spot gold was substantially higher at $1289.00 an ounce in early European trade, while silver was up at $17.91 an ounce.