NEW DELHI: Increased buying from local jewellers sent gold prices sharply higher today. Gold prices today rose ₹360 to ₹34,830 per 10 gram at the bullion market, Press Trust of India reported, citing All India Sarafa Association. Silver rates, however, fell by ₹140 to ₹41,660 per kg on decreased offtake by industrial units.
In Delhi, gold of 99.9% and 99.5% purities advanced by ₹360 each to ₹34,830 and ₹34,680 per 10 gram, respectively. Sovereign gold also rose by ₹200 to ₹26,600 per piece of 8 gram. Gold prices had dropped ₹210 on Wednesday.
On the other hand, silver ready declined by ₹140 to ₹41,660 per kg, while weekly-based delivery decreased by ₹51 to ₹40,501 per kg.
However, silver coins were in good demand and traded higher by ₹1,000 at ₹83,000 for buying and ₹84,000 for selling of 100 pieces.
In global markets, gold prices came off 10-month highs as the dollar inched up after minutes from the last US Federal Reserve meeting rekindled expectations of another rate hike this year.
Investors were also keeping a close eye on talks to end a trade dispute between China and the United States.
US gold futures were down 0.4% at $1,342.8 an ounce.
The Fed, in the minutes of its latest meeting in January, said the US economy and its labour market remained strong, prompting some expectations of at least one more interest rate hike this year.
Higher interest rates make gold less attractive since it does not pay interest and costs to store and insure.