Gold surges on global cues, up by Rs 250

Gold prices strengthened by Rs 250 per ten grams to Rs 15,420 for the second straight day on the bullion market here today on persistent safe-haven buying coupled with higher global advices.

Silver also moved up further on sustained industrial demand.

Safe-haven buying by investors due to uncentainty in equity markets and also rise in crude oil mainly boosted gold prices, a dealer said.

Gold prices early today rose in Europe by three per cent due to fall in equities on Wall Street to a 12-year low and weakness of the US dollar ahead of announcement of job data.

Spot gold climbed to $938.80/939.80 an ounce from $932.00 late in New York yesterday. Spot silver also shot up to $13.42/13.49 an ounce from $13.22 an ounce.

Gold for April delivery finished higher by $21.10 an ounce to $927.80 an ounce on the Comex division of the New York Mercantile Exchange.

Turning to the local market, standard gold (99.5 purity) shot up by Rs 250 per ten grams to Rs 15,420 from yesterday's close of Rs 15,170. Pure gold (99.9 purity) also hardened to Rs 15,490 from Rs 15,240 previously.

Silver ready (.999 fineness) also improved by Rs 130 per kilo to Rs 22,545 from Rs 22,415.