Gold prices on Wednesday rose by Rs 70 to breach the Rs 12,000 level on the bullion market on heavy buying triggered by firm global trends.
The precious metal added Rs 70 to close at Rs 12,030 per 10 gm, while silver jumped by Rs 180 to settle at Rs 20,930 a kg on increased demand.
Buying activity picked up as gold firmed up in global markets, marketmen said.
The precious metals rose for the second day in Asia as the dollar declined from a six-month high against the euro and crude advanced, boosting the appeal of the metal as a hedge.
Buying by stockists at existing lower levels to meet the demand during marriage and festival season also supported upward trend, traders said.
Standard gold and ornaments climbed by Rs 70 each to Rs 12,030 and Rs 11,880 per 10 gm respectively, the levels last seen on August 22. Sovereign, however, held steady at Rs 9,900 per piece of eight gram.
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Silver ready shot up by Rs 180 to Rs 20,930 a kg and weekly-based delivery by Rs 75 to Rs 20,275 a kg on buying by industrial units and jewellery fabricators.
Meanwhile, in the Mumbai bullion market, standard gold closed at Rs 11895 per 10 gm, up from Rs 11,820 yesterday. Pure gold closed at Rs 11,970 from Rs 11,885. Silver traded at Rs 21,160 per kg from Rs 21,070 yesterday.