Gold climbs Rs 175 on global cues, jewellers' buying

New Delhi: Gold prices surged by Rs 175 to Rs 31,725 per 10 gram at the bullion market Tuesday, driven by a firm global trend amid persistent buying by local jewellers.

Silver also went up by Rs 190 to Rs 38,290 per kg on increased offtake by industrial units and coin makers.

Traders said gold prices were higher owing to a firm trend overseas as investors were cautious ahead of a US Fed meeting, which could offer direction on future interest rate hikes, while markets kept a close watch on China-US trade war.

Globally, gold rose 0.03 per cent to USD 1,199.20 an ounce and Silver by 0.04 per cent to USD 14.23 an ounce in Singapore.

Besides, increased buying by local jewellers at the spot market and a depreciating rupee against the dollar, making imports costlier, too fuelled the uptrend.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity shot up by Rs 175 each to Rs 31,725 and Rs 31,575 per 10 gram, respectively. The precious metal had gained Rs 100 in Monday’s trade.

Sovereign, however, remained flat at Rs 24,500 per piece of eight gram.

Silver ready also strengthened by Rs 190 to Rs 38,290 per kg and weekly-based delivery by Rs 200 to Rs 37,725 per kg.

Silver coins, however, remained unaltered at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.