Gold prices up by Rs600 on global cues

Gold in overseas markets soared to its highest level in seven-week on speculative buying as dollar dropped to multi-week lows against the euro on uncertainty over the US government bailout plans.

In Hong Kong markets, the metal was trading higher at $906 an ounce from Monday’s level of $877.

Marketmen said crude oil recording a biggest one-day rise in global markets boosted demand for the precious metal as a hedge against inflation.

A plunge in stock markets also proved to be a positive factor for the bullion as investor pulled out funds from equities and bought gold for quick gains, traders said.

Meanwhile, gold in futures trading on the Multi Commodity Exchange for February delivery quoted higher by Rs143 at Rs13,349 per 10 gram.

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