Gold prices rise to 11-week high on firm overseas trend

29 December 2008

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.