Gold prices rose to Rs 31,340 per 10 grams, a 29-month high, by surging Rs 540 in the bullion market today, tracking a firm trend overseas amid increased buying by jewellers at the domestic spot market, reports PTI.

Bullion traders said sentiment bolstered after gold gained overseas as the dollar weakened and the US economy grew less-than-expected in the second quarter, boosting demand for safe-haven assets, PTI said.

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Yesterday, international spot gold rose 1.2 per cent to USD 1,357.50 an ounce. Prices have totally climbed 2.8 per cent this month.

There was persistent buying by jewellers following pick up in demand for ornaments at domestic spot market, supported the upside, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity soared Rs 540 each to Rs 31,340 and Rs 31,190 per 10 grams, respectively, a level last seen on February 26, 2014, when it had stood at Rs 31,530, added.

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