Gold prices in India were today up for the fourth day in a row amid a recovery in global rates. On MCX, October gold futures prices were up 0.20% to 38,180, extending gains to the fourth day. From Friday's low of 37,438, gold prices are up around 700 or nearly 2%. Silver prices surged today, rising 0.55% to 48,286 per kg on MCX. In global markets, gold prices were steady today at $1,530.92 an ounce as investors weighed increased political turmoil in Washington, after Democrats in the US House of Representatives on Tuesday launched a formal impeachment inquiry into President Donald Trump, accusing him of seeking foreign help to smear Democratic rival Joe Biden ahead of next year's election.

Adding to these were uncertainty surrounding planned high-level trade talks in October between US and China after Trump on Tuesday accused Beijing of currency manipulation, theft of intellectual property, and dumping.

In spot market, 24K gold prices jumped 162 to 39,182 per 10 gram Delhi while silver prices also rose by 95 to 48,815 per kilogram, Press Trust of India reported.

Gold prices, which are up around 20% so far this year, have already benefited from central bank easing, slowing global growth and the trade war. In global markets, gold is heading for a fifth monthly advance as the Federal Reserve and central banks globally cut interest rates to prop up economies hurt by the prolonged trade war.

Analysts say that the political turmoil in Washington may weigh on global equity market sentiment and US dollar.

Kotak Securities expects gold to trade with a positive bias on geopolitical tensions, global growth worries and expectations of further easing of monetary policy by central banks.

Reflecting the appeal of gold as an safe-haven assets, holdings of SPDR Gold Trust GLD, the world's largest gold-backed ETF, jumped 1.6% to 908.52 tonnes on Monday - the highest since November 2016.

Back in India, jewellers expect a pick-up in jewellery demand in the next quarter as the festive and wedding season starts. The physical gold market remains strong in expectation of strong festive demand, says HDFC Securities.

Analysts expect physical gold-buying to pick up once the Shradh period, which is considered inauspicious for buying bullion, ends on September 28. (With Agency Inputs)