Gold price logs biggest one-day rally this year, inches towards Rs 30,000 per 10 gms

New Delhi: Gold prices Friday zoomed by up to Rs 1,230, the biggest rise in a day this year, to multi-month high in major bullion markets of the country on continued buying by jewellers and retailers for ongoing wedding season amid overnight gains in global market.

At Chennai, gold prices climbed the most by Rs 1,230 to Rs 29,605 per 10 grams. Bullion markets were closed yesterday following strike by Gem and Jewellery Trade Federation against the government's decision to make PAN card mandatory for transactions of Rs 2 lakh and above.

In the national capital, the precious metal recorded a significant rise of Rs 850 to trade at Rs 29,650, a level last seen on May 16, 2014. Now, the yellow metal has gained Rs 2,600 in eleven straight sessions, its longest winning streak this year.

The precious metal has recorded the biggest single-day rise this year.

In addition, a depreciating rupee against the dollar, making imports costlier, supported the upside in the precious metal prices.

The precious metal rose by Rs 275 to Rs 29,260 per 10 grams in Mumbai, while at Kolkata it gained Rs 260 to Rs 29,800 per 10 grams.

Bullion traders attributed the rise in precious metal prices to sustained buying by jewellers as well as retailers driven by ongoing wedding season.

Besides, a better trend overseas where gold climbed 4.14 percent to over one-year high of USD 1,246.40 an ounce in New York in yesterday's trade also influenced bullion prices in the domestic markets, they said.

In futures trade, the April contracts of the metal however was trading 1.14 percent lower at Rs 29,450 per 10 grams on the MCX.