Gold surges Rs 505; crosses Rs 29,225 per 10 gm on global cues

New Delhi: Positive global cues triggered gold prices to sharply move up by Rs 505 in the bullion market, where the precious metal closed at 29,225 per 10 gm on Saturday.

Buoyancy in jewellers' demand at the domestic spot market also contributed to the rally in gold prices.

Gold prices snapped a 4-week losing streak in the international market with the precious metal rallying more than 2.2% to trade at 1239 ahead of the New York close on Friday.

Most of the gain in prices was triggered by after a dismal U.S. labor report saw expectations for a June Fed rate diminish. 

Gold on New York Mercantile Exchange was up 2.73 percent up to USD 1,243.50 an ounce in Friday's trade.

Silver also rebounded by Rs 400 to Rs 39,200 per kg on increased offtake by industrial units and coin makers.

In the national capital, gold of 99.9 and 99.5 per cent purity soared by Rs 505 each to Rs 29,225 and Rs 29,075 per ten grams, respectively. The precious metal had lost Rs 280 in last two days.

Sovereign, however, held steady at Rs 22,800 per piece of eight grams.

Silver coins also spurted by Rs 1,000 to Rs 67,000 for buying and Rs 68,000 for selling of 100 pieces