International gold surged for second consecutive day on reports that the Swiss National Bank lowered interest rates further into negative territory and also sliding equities supported the sentiment.

International spot gold was seen trading at $1,258 an ounce.

Gold is set to post its best week in ten months, as volatility in the market also led investors to take shelter in gold.

European markets were rattled yesterday by the move taken by the Swiss National Bank, pushing the currency higher against the euro. After the news, stocks in Swizterland plunged on fears of the Swiss economy.

In India, gold in previous session rose more than three months at the domestic bullion market as stockists and speculators went on a buying spree after a global commodity rally.

Speculators and traders booked profit after the short rally. At the Multi Commodity Exchange, gold futures for delivery in February was trading lower by Rs 58 or 0.26 per cent, to Rs 27,434 per 10 grams.

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