Gold makes headway, US Fed set to take a call on rate hike

New Delhi: Gold prices pushed higher by Rs 105 to Rs 30,380 per 10 grams on Tuesday as inflation cloud hung over US Federal Reserve policy action.

Any delay on rate hike keeps the dollar on the back foot and increases the lure of the yellow metal among investors.

The central bank's two-day meet starts on Tuesday. Domestic jewellers played ball amid a firm trend overseas.

Silver too rebounded Rs 250 to Rs 40,250 per kg, driven by industrial units and coin makers.

Marketmen said increased buying by local jewellers to meet wedding season demand at the domestic spot market and a strong trend overseas led to the recovery in gold prices.

Globally, gold rose 0.22 per cent to USD 1,276 an ounce in New York on Monday.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity bounced back by Rs 105 each to Rs 30,380 and Rs 30,230 per 10 grams, respectively. It had lost Rs 75 on Monday.

Sovereign, however, remained steady at Rs 24,700 per piece of eight grams in scattered deals.

Silver ready price was up by Rs 250 at Rs 40,250 per kg and that of weekly-based delivery by Rs 220 at Rs 39,295.

On the other hand, silver coins remained unchanged at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.