Mumbai:  Gold and silver prices spiked at the domestic bullion market here on Monday on good demand from stockists and investors.

The market sentiment turned highly bullish and speculative as trading resumed after a gap of three days amidst indefinite strike call given by jewellers and traders in protest against the budgetary proposal of duty hike over gold imports.

Standard gold of 99.5 percent purity surged by Rs 415 to end at Rs 28,275 per 10 grams from last Wednesday's closing level of Rs 27,860.

Pure gold of 99.9 percent purity also climbed by Rs 420 per 10 grams to close at Rs 28,410 from Rs 27,990.

Silver ready (.999 fineness) jumped by Rs 585 per kg to finish at Rs 56,915 as compared to Rs 56,330 previously.

In Europe, gold was trading lower as investors opted for stronger dollar amidst concerns over euro zone economy.

Spot gold was bid down at USD 1,660.79 an ounce in the early trade, while silver was trading flat at USD 32.21 an ounce.

(Agencies)