Gold surged to record high by adding Rs 536 to Rs 25,978 per 10 grams in futures trading today on buying by speculators, driven by a strong overseas trend, where investors sought safe haven following downgrading of the US credit rating.
The rising of gold to an all-time high of over $1,700 an ounce in the Asian region as equity markets tumbled worldwide, encouraging investors to park their funds in bullion, traders said.
At the Multi Commodity Exchange, gold for April delivery spurted by Rs 536, or 2.10%, to Rs 25,978 per 10 grams, with a business volume of four lots. Similarly, the precious metal for February delivery rose by Rs 560, or 2.21%, to Rs 25,858 per 10 grams, with a business volume of 38 lots.
Traders said buying activity gathered momentum after gold climbed above $1,700 an ounce for the first time as Standard and Poor's cut the top US credit rating, fueling a slump in equities and the dollar amid concern that the global economy is slowing.
They added that speculators were largely picking gold rather than other metals in futures on expectations of better return.
