New Delhi: Gold prices rebounded today on increased buying by local jewellers and higher global prices. Silver prices also rallied, boosted by increased offtake by industrial units and coin makers. Gold prices rose by 130 to 32,350 per 10 gram while silver prices jumped by 250 to 39,750 per kg. In Delhi, gold of 99.9% and 99.5% purity rose by 130 each to 32,350 and 32,200 per 10 gram, respectively, according to Press Trust of India. Sovereign gold, however, remained flat at 24,700 per piece of 8 gram. The precious metal had lost 50 on Monday.

Following gold, silver ready today rose by 250 to 39,750 per kg and weekly-based delivery by 251 to 39,010 per kg. Silver coins, however, continued to be traded at previous level of 75,000 for buying and 76,000 for selling of 100 pieces.

In global markets, gold prices edged higher today as equities faltered, weighed down by political tensions between Saudi Arabia and western powers, uncertainties around Brexit and Italy’s budgetary woes. Spot gold was up 0.2% at $1,223.66 an ounce at 0419 GMT. US gold futures rose 0.2% to $1,226.5 an ounce. Gold is used as an alternative investment during times of political and financial uncertainty.

“Geopolitical tensions are escalating and that has brought some safe-haven buying back into the gold market... Short positions also appear to be unwinding as a result," Reuters quoted ANZ analyst Daniel Hynes as saying.

Despite its safe-haven appeal, gold is down more than 10% from its April peak in global markets after investors preferred the dollar as the US-China trade war unfolded against a background of higher US interest rates.

However, gold prices in India have rallied due to the sharp fall in rupee, which is down over 13% so far this year against the US dollar. According to analysts, higher prices have dented demand for gold in India. Demand in India, the second biggest gold consumer after China, usually strengthens towards the end of the year during the traditional wedding season and major festivals including Diwali and Dusherra, when bullion buying is considered auspicious.

With Agency Inputs