New Delhi: Gold prices today maintained their upward momentum by rising 150 to 31,150 per 10 grams, according to a report from Press Trust of India. Gold prices had jumped 380 in last three days. Steady buying by local jewellers, driven by ongoing festive season demand and positive global cues helped lift domestic gold prices today. Silver too today gained 170 to 38,470 per kg due to increased offtake by industrial units and coin makers.

In Delhi, gold of 99.9 per cent and 99.5 per cent purity gained 150 each to 31,150 and 31,000 per ten grams, respectively, according to the report. Sovereign gold, too, traded higher by 100 at 24,600 per piece of eight grams.

In sync with gold price rise, silver ready today hardened by 170 to 38,470 per kg and weekly delivery by 125 to 37,275 per kg. Silver coins too spurted by 1,000 to 73,000 for buying and 74,000 for selling of 100 pieces.

In global markets, gold prices inched down from a two-week high hit in the previous session. The dollar index inched up 0.1% against a basket of six major currencies today, after falling to a more than three-week low. The rupee was trading flat at 70.16 a dollar in afternoon trade.

In global markets, spot gold fell 0.2% to $1,209.04 an ounce, after hitting its highest since 13 August at $1,212.38 on Monday.

Global gold prices have recovered after touching one-and-a-half-year lows on August 16 at $1,159.60 as the dollar’s run slowed after US President Donald Trump criticized the Federal Reserve for raising interest rates at a time when the government was trying to stimulate the economy.

Gold has lost its appeal as a safe-haven asset, having fallen over 7% so far this year, amid international trade disputes and the Turkish currency crisis, with investors increasingly turning to the US dollar instead.

Gold prices are highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

The demand for gold in India during the forthcoming wedding season could be hit after heavy rains and floods caused more than $3 billion of damage in Kerala, biggest gold-buying state in India, according to some jewellers. In India, the monthly per capita expenditure on gold ornaments was the highest in Kerala, according to the Ministry of Statistics and Programme Implementation’s 2011-2012 survey.

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