New Delhi: Gold prices Wednesday surged by Rs 260 to 34,380 per 10 gram at the bullion market here, supported by firm global trend on the back of safe haven buying of the yellow metal by investors and increased demand from local jewellers.
Globally, gold was trading higher at USD 1,425.95 an ounce, while silver was up at USD 15.31 an ounce in New York.
"Bullion prices traded higher, with international spot gold prices traded above USD 1,430 on Wednesday. Gold prices rallied on safe haven buying with investors sighting economic growth concerns. The US 10-year bond yields fell to 2-year lows supporting gold buying." HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
"The trade war jitters on fresh threat of tariffs on USD 4 billion EU goods, expectations of rate cut for the US Federal Reserve and signs of monetary easing from central banks is favouring medium term bullish trend in gold prices," he added.
Tracking gold, silver also rose Rs 150 to Rs 38,650 per kg on more offtake by industrial units in the national capital.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity gained Rs 260 each to Rs 34,380 and Rs 34,210 per 10 gram, respectively, according to the All India Sarafa Association.
Sovereign gold, however, held steady at Rs 26,800 per eight gram.
Silver ready prices advanced by Rs 150 to Rs 38,650 per kg, while weekly-based delivery jumped Rs 349 to Rs 37,348 per kg.
Price of silver coins held flat at Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.