New Delhi: Gold prices today jumped by 175 to 31,725 per 10 gram, supported by positive global cues and continued buying by local jewellers, reported PTI. Global gold rates held steady as investors were cautious ahead of a US Federal Reserve meeting, while markets kept a close eye on developments on the US-China trade fronts. In Delhi, gold prices of 99.9% and 99.5% purity shot up by 175 each to 31,725 and 31,575 per 10 gram, respectively. The metal had gained 100 in Monday’s trade. Sovereign remained flat at 24,500 per piece of eight gram.

Following gold, silver prices also surged by 190 on increased offtake by industrial units and coin makers. Silver ready also strengthened by 190 to 38,290 per kg and weekly-based delivery by 200 to 37,725 per kg. Silver coins remained unaltered at 72,000 for buying and 73,000 for selling of 100 pieces.

In global markets, spot gold rate was up 0.1% to $1,200.08 an ounce by 3.46 pm. US gold futures were little changed at $1,204.50 an ounce. Gold has fallen over 12% since in April, marred by rising U.S. interest rates and a global trade war that has led investors to chose the dollar as a safe haven rather than gold.

“Upside scenarios (for gold is if) the Fed sounds a bit more dovish, but there’s not a lot of room for that at the moment. U.S. data hasn’t weakened and market positioning for rate hikes is not excessively hawkish compared to the Fed," Reuters quoted Macquarie commodity strategist Matthew Turner as saying. “In general, market dynamics are quite weak for gold."

The Indian rupee traded below the 72.5 mark against the US dollar after crude oil prices surged to a near four-year high. At 4.21pm, the rupee was trading at 72.61, down 0.03% from its previous close. So far this year, the rupee has declined 12.2%.

With inputs from Reuters