Gold prices surge to new high as India buys $6.7b of gold

New York: Gold prices have surged to a new high on news that India's central bank bought $6.7 billion worth of gold from the International Monetary Fund.

December gold jumped as high as $1,087, before settling up $30.90, or 2.9 per cent, at $1,084.90 an ounce on the New York Mercantile Exchange. Prices are now up 22.7 per cent for the year.

Other precious metals followed gold higher. December silver soared 74 cents, or 4.5 per cent, to $17.18 an ounce, while December platinum rallied $18.10 to $1,353 an ounce.

December copper futures rose 1.1 cents to $2.956 a pound.

On the Chicago Board of Trade, December wheat futures rose 1 cent to $5.1575 a bushel, while corn for December delivery rose 7.75 cents to $3.09 a bushel.

January soybeans rose 12.5 cents to $10.105 a bushel.