Gold prices surged higher near $1,125

Gold prices surged higher near $1,125 an ounce as euro – the currency of 16 nation European region – strengthened against the dollar. Rise in risk appetite has led to a fall of greenback and which in turn benefited gold and other precious metal counters. Also, the sudden rise in physical demand for gold led to a rise in prices.

Spot gold inched 0.4% up to $1,117.75 per ounce compared to New York 's notional close of $1,113.95. Earlier in the day it hit a high of $1,124.45, the highest since January 20. US gold futures for April delivery were down marginally at $1,117.70 an ounce after rising $13 on Tuesday on the COMEX division of NYMEX.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings stood at 1,111.92 tonne as of February 2, unchanged since January 19.

Gold & Silver price in india

MCX Gold for February settlement opened lower at Rs 16,600 per 10 gram. After a brief rise towards Rs 16,720, the contract retraced to current level of Rs 16,610 per 10 grams.

MCX Silver March settlement contract traded 0.2% higher at Rs 26,106 per kg, after having opened the session at Rs 26,080.

Source BloombergUTV