Gold Surges Ahead of ECB Meet

International gold surged above $1,300 per ounce due to soft dollar and uncertainties hovering around European Central Bank (ECB)'s stimulus measures.

Markets are nervous ahead of the ECB meet on Thursday as it is expected to unveil a quantitative easing programme. While the programme is assured the size and the nature has posed worries for markets hence investors are taking shelter in gold.

Last week, gold posted its biggest weekly gains since August after the Swiss National Bank lowered interest rates further into negative territory and also sliding equities supported the sentiment.

Worries over global economy will benefit the yellow metal as investors consider it as safe haven during the economic turmoil.

In India, gold prices rose in futures trade as participants engaged in enlarging positions largely in tune with a firming trend overseas.

At the Multi Commodity Exchange, gold futures for delivery in February was trading higher by Rs 113 or 0.40 per cent, to Rs 28,198 per 10 grams.

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