Gold prices today surged to an 11-week high at Rs13,725 per 10 gm in the national capital, gaining Rs260 overnight, on hectic Investor buying. The precious metal, which gained Rs285 in the previous trading session, is expected to touch a record Rs14,000 per 10 gm reached on 10 October.

Analysts expect India's gold futures to rise above Rs14,000 this week, on the back of rising crude oil prices.

Silver prices also showed firmness, surging Rs400 to Rs17,850 per kg on rising demand from industrial units.

In the international market, gold rose 2.4 per cent to $890.49 an ounce in Asia following escalation of tension in West Asia.

Stockists were lapping up stocks on expectations that the prices might surge as gold is seen as a safe hedge during crisis times.

Standard gold and ornaments shot up by Rs260 each to Rs13,725 and Rs13,575 per 10 gm, respectively. Sovereign remained unchanged at Rs10,700 per piece of eight gm. 

Silver ready surged by Rs400 to Rs17,850 per kg and weekly-based delivery by Rs500 to Rs17,920 per kg. Silver coins remained at the same level at Rs27,000 for buying and Rs27,100 for selling of 100 pieces.

Crude oil and gold prices move in tandem as one drives inflation, increasing the other's appeal as a hedge.

Gold futures on the MCX (MAUc1) last traded higher by 2.47 per cent at Rs13,723 per 10 gm, around Rs600 lower than its all-time high of Rs14,320 struck on 10 October.