Article: India: India s gold buying pushes metal to new high.

Byline: sanjayV03

Gold prices surged to a new high Tuesday 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 percent, at $1,084.90 an ounce on the New York Mercantile Exchange. Prices are now up 22.7 percent for the year.

India's purchase of about 200 metric tons of gold was a strong indication of the investment demand for the precious metal. "To see a central bank buy at this kind of level shows there are going to be a lot of other buyers out there," said David Beahm, vice president of economic research at Blanchard & Co., a ...

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