Gold prices today surged by Rs 230 to close at Rs 15,330 per ten gram in the bullion market here on emergence of buying by stockists in tandem with firming global trend after the US Fed unveiled its plan to arrest recession.
Buying activity picked up as the precious metal in the overseas market gained 3.6 per cent, the most since January 23 after the Federal Reserve said it will buy 1.15 trillion dollar in bonds to lower borrowing costs, reviving investor's concern that inflation will accelerate.
The gold in the US market remained volatile as it dipped to 882 dollar an ounce before surging to 950.60 dollar as investor's interest revived expecting the government move would check further deepening global recession, traders said.
Silver, on the other hand, suffered moderate loses as bullion merchants were shifting their funds in gold for quick gains. Silver ready fell by Rs 40 at Rs 21,440 per kg and weekly-based delivery by a same margin at Rs 21,360 per kg. Silver coins were unchanged at Rs 28,000 for buying and Rs 28,100 for selling of 100 pieces.
Standard gold and ornaments surged by Rs 230 each at Rs 15,330 and Rs 15,180 per ten gram respectively. Sovereign also rose by Rs 100 at Rs 12,300 per piece of eight gram.