Gold crosses Rs. 28,000-mark on frantic buying

Gold climbed to an all-time high of Rs. 28,150 (10 gram) in the Delhi Bullion market on Friday, posting its biggest-ever single-day gain of Rs. 1,310 amid frantic buying triggered by robust demand in global markets. Trading sentiment at home was bolstered by gold's ascent to a record level in overseas markets as mounting concerns over sovereign debt and slower growth spurred investors to seek the perceived safety of bullion as an investment haven. 

Gold rose to an all-time high of $1,867.95 an ounce in London, with investors preferring to hedge their funds amid melting global equity markets in the wake of worse-than-expected US economic data, coupled with growing concerns over Europe's debt crisis. 

All-India Sarafa (Bullion) Bazar Association President Sheel Chand Jain said the jump in gold prices in a single day was the biggest in the metal's history, adding that a further rise was expected as investor buying picks up.

The trend at home was more influenced by the international price of gold, though scattered local buying for the coming marriage season was an additional factor boosting demand for the shiny metal, he said. 

 On the domestic front, gold of 99.9 and 99.5 purity spurted by Rs. 1,310 each to Rs. 28,150 and Rs. 28,000 per ten gram, respectively. Sovereign followed suit and surged by Rs. 1,100 to Rs. 22,400 per piece of eight gram. In a similar fashion, silver ready surged by Rs. 1,500 to Rs. 62,800 a kg and weekly-based delivery by Rs. 1,920 to Rs. 62,690 a kg. Silver coins flared up by Rs. 1,000 to a fresh high of Rs. 69,500 for buying and Rs. 70,500 for selling (100 pieces).