Taking a cue from the global market, gold prices today shot up by Rs 120 to Rs 30,650 per 10 grams at the bullion market. Standard gold (99.5 purity) rose by Rs 120 to end at Rs 30,650 per 10 grams from last Friday's level of Rs 30,530. Pure gold (99.9 purity) also climbed by a similar margin to finish at Rs 30,800 per 10 grams against Rs 30,680 previously.
Silver too rallied by Rs 365 per kg following increased demand from industrial units. Silver (.999 fineness) surged by Rs 365 per kg to settle at Rs 39,660 from Rs 39,295 earlier.
The jump in Indian market was recorded after gold prices rose to a two-week high in global markets rebounding from a seven-month low touched in the previous session. The price rally was largely driven by a firm trend overseas, but increased buying by local jewellers to meet retailers demand at domestic spot market.
Gold futures gained 0.06 per cent to Rs 30,920 per 10 gram. At the Multi Commodity Exchange, gold for delivery in October moved up by Rs 17 to Rs 30,920 per 10 gram in a business turnover of one lot. Likewise, the yellow metal for delivery in August was trading higher by Rs 16 to Rs 30,633 per 10 gram in 258 lots.
Globally, gold rose by 0.08 per cent to USD 1,258.20 an ounce in Singapore.
According to a report in Reuters, stronger yuan (Chinese currency) and slight weakness in the USD has provided support for gold in global market. The US dollar saw little change against a basket of six major currencies on Tuesday after dropping to its lowest since mid-June in the previous session, while the British pound was frail after the departure of two key ministers - Boris Johnson and David Davis - raised worries about Brexit.
Commenting on the recent rise in gold, National Australia Bank economist John Sharma, who spoke to Reuters, said: "Geopolitical issues such as Britain's confused exit from the European Union and US President Trump's assertion that China was impeding North Korean progress on denuclearisation have provided some support for gold."