Gold surges Rs 300 on fresh buying, strong global trend

New Delhi: Gold prices rose by Rs 300 to Rs 33,870 per 10 gram in the bullion market here Friday on fresh buying by jewellers and a firm trend overseas, according to the All India Sarafa Association.

Tracking gold, silver also surged by Rs 550 to Rs 38,400 per kg on increased offtake by industrial units and coin makers.

Sentiment in the domestic market was upbeat on the back of increased buying by jewellers and a firming trend in global markets, bullion traders said.

"Spot gold rose to USD 1,358 an ounce in the international market, its highest level since April 2018. Geopolitical concerns especially from the Middle East and feeble economic releases from China and the US raised the metal's safe-haven demand.

"Weak global growth forecast amid growing trade war tensions and hopes of US interest rate cut stoked investors towards the yellow metal. Gold usually trades higher during times of economic or political uncertainties," said Hareesh V, Head-Commodity Research, Geojit Financial Services.

Meanwhile, spot gold was trading higher at USD 1,356.70 an ounce in New York and silver was up at USD 15.11 an ounce.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity rose by Rs 300 to Rs 33,870 per 10 gram and Rs 33,700 per 10 gram, respectively.

Sovereign gold, however, remained flat at Rs 26,700 per eight gram.

Silver ready climbed Rs 550 to Rs 38,400 per kg, while weekly-based delivery rose Rs 614 to Rs 37,439 per kg.

Silver coins held flat at Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.