Gold hits new record

Gold pries surged to a record high at Rs 11,840 per 10 gram on Monday owing to brisk buying by major market players, who were enthused by firming global trend, and some investors' shifting focus from melting stock markets to the bullion mart.

The market remained in bullish mood with gold remaining on record-setting spree as investors shifted a part of their funds from weakening stock markets to gold as the metal offers a safe haven for investments, traders said.

Gold in global markets rose to dizzy heights by gaining $7.69 at $921.64 an ounce, a level never seen before, on speculation that US Federal Reserve might cut interest rates again to revive economic growth, they said.

The Fed last week cut lending rates by 0.75 percentage point, the biggest reduction in 23 years. The metal last surged to $850 in 1980 after US inflation rose to 12 per cent.