Gold prices surged Rs 2,200 to hit a fresh peak of Rs 1,16,200 per 10 grams in the national capital on Monday buoyed by strong global cues as investors awaited key commentary from US Fed officials for policy direction. According to the All India Sarafa Association, the precious metal of 99.9 per cent purity had closed at Rs 1,14,000 per 10 grams on Friday.

In the local bullion market, gold of 99.5 per cent purity rallied Rs 2,150 to hit a record high of Rs 1,15,650 per 10 grams. "Both gold and silver traded at record levels in the domestic markets, tracking the bullish trend in international markets. A dovish signal from the US Federal Reserve (Fed) suggests that two additional rate cuts are likely by the end of this year, which could limit gains in the US dollar and Treasury yields while bolstering precious metal prices," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.