Gold climbs Rs 500 to Rs 74,600 per 10 grams; silver jumps Rs 500

New Delhi, Sep 11 (PTI) Gold prices climbed Rs 500 to Rs 74,600 per 10 grams in the national capital on Wednesday on account of increased buying by local jewellers as well as strong cues in the global markets.

The precious metal of 99.9 per cent purity had closed at Rs 74,100 per 10 grams in the previous close on Tuesday.

With this, gold prices have surged over Rs 1,000 over the past two days.

Silver prices, too jumped Rs 500 to Rs 85,000 per kilogram on Wednesday. It had finished at Rs 84,500 per kg in the previous session, according to All India Sarafa Association.

Meanwhile, gold of 99.5 per cent purity also rallied Rs 500 to Rs 74,250 per 10 grams from Rs 73,750 per 10 grams.

Traders said sentiment turned upbeat on the back of a pick-up in buying from local jewellers and retailers, thereby leading to a rise in gold prices.

In the international markets, Comex gold is trading 0.31 per cent higher at USD 2,550.90 per ounce.

“Gold prices rose on Wednesday due to a pullback in the US dollar and fall in Treasury yields,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

In addition to this, equity market sell-off and risk-averse sentiment drove flows towards haven assets like gold, which also lent support for gold prices, Gandhi added.

Silver was also quoted higher at USD 29.11 per ounce in the overseas markets.

“Gold continued to trade in a positive territory since yesterday (Tuesday) with sentiments seen improving on the back of decline seen in US Treasury yields.

“Traders braced for upcoming lower than expected US inflation report which could alter expectations of size of interest rate cuts in US Federal Reserve meeting scheduled on September 18-19,” Maneesh Sharma, AVP of Commodities & Currencies, Anand Rathi Shares and Stock Brokers, said.