Gold surges on firming overseas trend

Gold prices surged by Rs 100 to Rs 13,000 per 10 gram on the bullion market here on stockists buying sparked by a firming trend in the international market.

Silver also rose by Rs 50 at Rs 17,000 per kg.

Buying activity picked up following reports that the precious metal in overseas market rose as weakening dollar against the euro raised demand for the gold as an alternate investment.

The dollar fell to seven-week low level against the euro. The rising price of crude oil was another supporting factor for the yellow metal.

Gold generally moves in opposite direction to the US currency, traders said, adding that surging crude oil raised concerns of inflation and boost demand for precious metal as a safe hedge.

Along with the general firm trend, silver ready rose by Rs 50 at Rs 17,000 per kg and weekly-based delivery by Rs 40 at Rs 17,120 per kg. Silver coins spurted by Rs 200 at Rs 26,600 for buying and Rs 26,700 for selling of 100 pieces.

Standard gold and ornaments gained Rs 100 each at Rs 13,000 and Rs 12,850 per 10 gram respectively. Sovereign was unchanged at Rs 10,500 per piece of eight gram.