Gold prices jumped to Rs 31,010 per 10 grams, a level not seen since February this year, on strong demand from stockists ahead of festive season, after RBI prohibited inward shipment of gold coins, medallions and dores without licence.
This is the biggest single-day surge since on August 19, 2011, when the metal had risen by Rs 1,310.
The precious metal soared by Rs 1,195 to Rs 31,160 in Kolkata. It rose by Rs 1,115 to Rs 30,810 per 10 gram in Chennai and by Rs 1,155 to Rs 30,830 per 10 gram in Mumbai.
Restricted supply after government increased import duty on the metal to 10 per cent on August 13 and firm global cues supported the upsurge in the metal, traders said.
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Silver also followed suit and spurted by Rs 3,270 to Rs 49,320 per kg, its highest level this year on rising demand from industrial units and coin makers.
Gold prices in futures trading also crossed Rs 30,000 per 10 gram level signalling more rises in coming days.
Stock markets crashed by nearly 4 per cent and the rupee dipped below the 62 level against dollar for the first time today amid fears the government may move to a capital-control regime to curb forex volatility and narrow CAD.