New Delhi: Gold prices rose for the third straight day surging by Rs 180 to close at Rs 12,350 per ten gram in the bullion market here on reports of the precious metal's steep rise in the Asian region as investors shifted their funds from the melting bourses.

Buying activity in gold also picked up as stockists and retailers remained aggressive buyers in the view of marriage season amid report of rising trend in overseas market.

Marketmen said, the precious metal mostly gained on increased buying in line with sharp rise in Asian region on deepening global financial crisis.

They said falling equity market across the board also made the precious metal a better investment and shifted funds from stocks to bullion.

Standard gold and ornaments which had gained Rs 80 each in last two trading session, surged by Rs 180 each to Rs 12,350 and Rs 12,200 per ten gram respectively. Sovereign followed suit and traded higher by Rs 50 to Rs 10,450 per piece of eight gram.

In the overseas markets gold rose to 746.00 dollar an ounce against last close of 740.50-741.50.

On the other hand, silver ready lacked necessary buying support and declined by Rs 100 to Rs 16,550 per kg and weekly-based delivery by Rs 80 to Rs 16,370 per kg. Its coins, however, remained steady at Rs 26,400 for buying and Rs 26,500 for selling of 100 coins.

Source : PTI