Gold rises Rs 280 to Rs 34,300 on firm global cues

The precious metal strengthened on the back of buying by local jewellers and strong trend overseas after gold surpassed USD 1,400 mark per ounce, analysts said.

New Delhi: Continuing its rising streak for the fourth straight day, gold prices Friday surged Rs 280 to Rs 34,300 per 10 gram in the bullion market here on the firm global trend and increased buying from jewellers, according to All India Sarafa Association.

Silver too followed suit and advanced by Rs 40 to Rs 39,100 per kg on more offtake by industrial units and coin makers.

The precious metal strengthened on the back of buying by local jewellers and strong trend overseas after gold surpassed USD 1,400 mark per ounce, analysts said.

"The international spot gold prices rallied above USD 1,400 in the early trade as geopolitical tensions in Iran added risk premium in prices. The fall in the dollar index and decline in US bond yields supported sharp buying in gold on the war-like situation.

"The dovish stance from major central banks from the world has also supported prices to trade higher after central banks from US, Europe and Australia signalled to ease monetary policies to support the lingering economic condition," said Tapan Patel, Senior Analyst - Commodities, HDFC Securities.

Gold prices have rallied 10 per cent for the year 2019 on economic uncertainty and trade war concerns. As the major central banks are into gold buying spree, we can expect the upper trading range in gold prices in the medium term, he added.

In New York, gold was trading higher at USD 1,395.18 an ounce, while silver held steady at USD 15.35 per ounce.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity rose Rs 280 each to Rs 34,300 and Rs 34,130 per 10 gram, respectively.

Sovereign gold, however, held steady at Rs 26,800 per eight gram. In last three sessions gold had risen by Rs 400.

Meanwhile, silver ready gained by Rs 40 to Rs 39,100 per kg, while weekly-based delivery gained Rs 140 to Rs 38,184 per kg. Silver coins were in good demand and traded higher by Rs 1,000 at Rs 81,000 for buying and Rs 82,000 for selling of 100 pieces, respectively.