Gold prices surged over 1 per cent to Rs 30,308 per ten gram in futures trade today as speculators indulged in building up fresh positions amid a firming trend overseas as the US Federal Reserve unexpectedly refrained from cutting economic stimulus.
At the Multi Commodity Exchange, metal prices for delivery in October went up by Rs 318, or 1.06 per cent, to trade above Rs 30,308 per ten gram, in a turnover of 868 lots.
On the similar lines, the metal prices for delivery in far-month December shot up by Rs 163, or 0.88 per cent, to Rs 30,110 per 10 gm, in a business volume of 121 lots.
Analysts attributed gains in the precious metal at futures trade to a firm trend in the overseas markets as the Federal Reserve decided to keep its stimulus programme intact, raising demand for the precious metal.
Besides, hike in import duty on gold and silver jewellery to 15 per cent from 10 per cent by the government, also influenced prices, they said.
Globally, gold soared by USD 55.30, or 4.22 per cent, the most since June 1, 2012, to USD 1,365.30 an ounce in New York yesterday.
Singapore: Spot gold traded near a one-week high on Thursday after the US Federal Reserve surprised markets by postponing a wind-down of its commodities-friendly monetary stimulus and the dollar tumbled to seven-month lows.
US gold futures jumped as much as 4.6 percent on the decision, while silver futures gained 7 percent, tracking spot prices' gains from the previous session.
The absence of key buyer China, which is closed for the Mid-Autumn Festival holiday, kept gains in check.
Fed Chairman Ben Bernanke on Wednesday refused to commit to begin reducing the bond purchases this year, and instead went out of his way to stress the program was "not on a preset course". In June he had said the Fed expected to cut back before year end.
Many economists had expected a $10 billion reduction to the bank's $85 billion monthly bond purchases.
"It's quite surprising given what they have said before. That's why there is a big impact on precious metals," said Dick Poon, general manager of refiner and dealer Heraeus Metals in Hong Kong. "But I don't see a strong rally as there is not much demand."
Traders said though there were chances of a short-covering rally because of the Fed's turnaround, they were not very optimistic about a sustained rise in prices.
Gold, often seen as an