Gold glitters, jumps Rs 200 amid positive global market

New Delhi: Gold prices jumped by Rs 200 to Rs 34,470 per 10 gm in the national capital Tuesday on increase in demand from local jewellers and positive global markets as investors are preferring the yellow metal as safe haven amid US-Iran tensions.

Tracking the movement of gold, silver prices also rose by Rs 110 to Rs 39,200 per kg on higher uptake by coin makers and industrial units.

Traders said increased buying by local jewellers and positive global market pushed spot gold prices in the domestic markets.

Globally, gold prices were trading higher at USD 1,429.80 an ounce, while silver prices were up at USD 15.52 an ounce in New York.

Market analysts said global gold prices are hovering near six-year highs amid ongoing stand-off between the US and Iran, as investors are preferring the yellow metal as a safe investment.

"The international spot gold prices traded near USD 1,430 an ounce to six-year high witnessing strong buying on safe haven," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

He added that the sharp decline in dollar index and lower bond yields amid economic uncertainty and trade talk worries supported gold buying.

"The slower global economic growth and dovish stance from major central banks and looming trade war concerns is fuelling higher demand for gold, adding risk premium to the prices," he said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity jumped by Rs 200 each to Rs 34,470 and Rs 34,300 per 10 gram, respectively.

Sovereign gold also moved up by Rs 100 to Rs 26,900 per eight gram.

Silver ready prices rose by Rs 110 to Rs 39,200 kg, while weekly-based delivery edged up by Rs 35 to Rs 38,133 per kg.

Price of silver coins too jumped by Rs 1,000 to Rs 81,000 for buying and Rs 82,000 for selling of 100 pieces.