Gold prices up by Rs 1,000 in early trade

Gold prices surged by Rs 1,000 to Rs 12,915 per 10 gram in opening trade today in the bullion market here owing to firm global cues and melting stock markets.

Traders said gold sparkled as an alternate investment option in global as well as in domestic markets amidst a plunge in stock markets following deepening of credit crisis in the US.

Standard gold and ornaments prices shot up by Rs 1,000 each to Rs 12,915 and Rs 12,765 per 10 gram respectively. In global markets, gold prices posted the biggest one-day gain of 8.4 per cent at USD 870 an ounce, since 1980 as fears of more credit market turmoil unnerved investors and triggered safe-haven buying in precious metal.

Meanwhile, gold futures at country's leading Multi Commodity Exchange surged 4.22 per cent to Rs 13,133 per 10 gram for far-month February contract in early trade.