MUMBAI (Commodity Online): Gold futures surged Monday in the mid London trade due to the fall of US as the fall in the US futures triggered safe haven demand for the metal.

An ounce of gold on the COMEX division of the New York Mercantile Exchange rose to as high as $ 1108.4 up over $6.

MCX gold April futures jumped over Rs 60 at Rs 16512 per 10 grams. The next resistance comes around Rs 16580 and Rs 16640 levels.

The risk aversion in the markets pulled the oil futures and the US equities lower. The oil futures declined below $ 81 a barrel while the US dollar was trading sharply higher against the Pound and the Euro

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Gold closed the week near its lows at 1102$. Despite last weeks bullish close above 1131$ the metal was not able to extend the up move. Gold may get pressure this week as speculation that governments could pare economic stimulus measures dampens demand for the metal, a survey showed.

China’s inflation reached a 16-month high and industrial production rose the most in more than five years, data showed yesterday.

Bullion climbed 24 percent last year as central banks maintained low interest rates and spent trillions to stimulate economies. The metal reached a two-week low yesterday on speculation that demand will slow as the Greek financial crisis eases.

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