In 3.38% one-day increase, gold up by Rs 945 to Rs 28,835/ 10 gm

Gold prices staged a smart rebound to surpass the psychologically important Rs 28,000 milestone once again as frantic speculative buying activity swept the bullion hub here in the face of highly bullish overseas trend. 

Besides, swelling festive and wedding-related demand unleashed an unprecedented buying frenzy even as investors scrambled to hold a bit of shiny metal on the back of collapsing stock markets.

The yellow metal shot-up by a whopping Rs 945 or 3.38 per cent to end at Rs 28,835 per 10 grams — the level not seen since May 20, 2014. The sudden buying frenzy was triggered by the metal’s stealth rally in worldwide trade. 

It jumped to the highest level in ten-months after the United State’s of America’s central bank signaled delaying further interest-rate hikes and also warned that global financial market turbulence could hurt US growth.