Gold prices continue to surge in the local market from last couple of days in reaction to the Britian's gold auction held in last week. The festival demand also added the upward trend in the market.

Ten tola gold biscuit prices shot up by Rs 2900 in the last three consecutive trading sessions while the standard mint and 22 carat gold prices gained by Rs 250 and Rs 230 respectively.

The white metal also followed the suit of yellow metal as the prices of silver 999 and raw advanced sharply by Rs 85 and Rs 90 to Rs 8200 and Rs. 8085 per kg respectively on renewed buying interest from industrial users and local dealers, sources said.

Bombay bullionassociation president M L Damani said the gold prices widely fluctuated since last few days due to shortage of ready stocks coupled ongoing firm trend in the London gold market. Gold quoted higher at $ 270 per ounce against 266.85 per ounce quoted on previous day.

There were reports that European Central Bank (ECB) in a statement stated that its annual gold sales will not exceed around 400 tonnes.