Gold vaulted more than 5 percent on Thursday to a one-year high, on track for its biggest daily jump in more than seven years as financial uncertainty, a lower dollar and tumbling stock prices around the world prompted investors to seek refuge in bullion.
Global equity markets have been hit by worries over the health of the euro zone banking sector, with a very loose monetary policy seen crimping bank profits and consequently their ability to repay debt.
Gold prices on Tuesday regained the Rs 28,000-mark by soaring Rs 710 -- its biggest single-day surge this year -- to trade at its highest level in over one-year on bullish trend in global markets and buying by jewellers.
Gold stayed near a three-month top on Thursday after marking its best day in two weeks, buoyed by expectations that global economic and financial headwinds could make it tough for the US Federal Reserve to raise interest rates in the near term.
Buoyed by positive global cues and sustained buying by jewellers at domestic spot markets, gold continued to rise for the fourth straight day by gaining Rs 100 to trade at Rs 27,400 per ten grams at the bullion market Wednesday.
Its latest attempt - a rule forcing buyers of high-value jewellery to disclose their tax code - has boosted unofficial trading in the world`s second-biggest gold consumer, industry experts say, rather than promote transparency and dent demand.