Gold prices surged for second consecutive day giving a pullback from seven week's low after investors were seen buying the yellow metal as a hedge against the unstable financial markets.
Gold prices are likely to fall and may test support of Rs 1,800-1,790/gm in a few days. Record output is seen at mines in Australia and Indonesia.
E-Gold opened lower at Rs 1857.90/gm against Rs 1864.70/gm close in the last trading session.
SPDR Gold trust has been under pressure in the recent past as liquidation of assets have taken place.
The level of $1,165/oz is likely to provide strong support to the yellow metal.
