Gold prices increased by Rs 200 on Monday to reach Rs 72,350 per 10 grams, while silver prices surged by Rs 1,000 per kg in the local market, driven by strong global trends.
In the previous session, gold with 99.9% purity had closed lower at Rs 72,150 per 10 grams on Saturday, as reported by the All India Sarafa Association.
Silver prices surged by Rs 1,000 to Rs 83,500 per kg, up from Rs 82,500 per kg at the previous close.
Gold with 99.5% purity also increased by Rs 200 to Rs 72,000 per 10 grams, compared to Rs 71,800 per 10 grams in the last trade on Saturday.
Traders attributed the rise in gold prices to increased demand from local jewellers and a strong trend in the overseas markets.
On the global front, Comex gold is trading at $2,481.80 per ounce, up by $8.40 per ounce.
"Gold prices rose on Monday as persisting geopolitical concerns about Middle Eastern crises boosted the safe-haven demand for precious metal," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
Apart from that, traders also increased their bets on the US Federal Reserve's aggressive interest rate cuts this year after recent weak macro data provided further support for the yellow metal, Gandhi added.
According to Manav Modi, Senior Analyst of Commodity Research at Motilal Oswal Financial Services, gold prices held steady after a sharp rise in the previous session, bolstered by a dip in US Treasury yields, as investors grew confident that the Fed would lower interest rates in September this year.
Silver is up at $28.01 per ounce in the international markets.
Traders shifted their focus to the US consumer price index data, due next week, for insights into the Fed's likely monetary policy path, Modi said.
As per Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, gold prices are largely driven by escalating tensions in the Middle East, particularly concerns over a potential attack by Iran on Israel.
(With Inputs From PTI.)
Gold Prices Hold Firm At Rs 71,350, Silver Falls By Rs 1,100. Read more on Markets by NDTV Profit.