Gold futures soared by 4 per cent to hit the upper level limit on the Multi Commodity Exchange today as traders indulged in covering up their short positions driven by overnight strong rally in overseas market.
Gold for the most-active April contract flared up by 4 per cent to Rs 15,292 per 10 gram, with a business volume of 7,894 lots.
The far-month June contract also hit upper circuit by rising 4 per cent to Rs 15,228 per 10 gram in a turnover of 974 lots.
Experts attributed sharp recovery in gold future to overnight rally in the international markets after the US Federal Reserve announced it would buy up to 300 billion US dollar worth of long-dated US government debt, reviving bullion's appeal as a hedge against inflation.
Gold surged by 34.60 dollars to 950.50 dollars an ounce in the overseas market last evening.