Gold prices gain Rs 538 to Rs 38,987 per 10 gm

Prices of 24 karat gold rose by Rs 538 to Rs 38,987 per 10 gram in the national capital on Tuesday, mainly on the back of recovery in global rates, according to HDFC Securities.

Silver prices too witnessed similar trends. The rate of silver zoomed by Rs 1,080 to Rs 47,960 per kilogram in the national capital, as per the data.

"Gold prices traded positive on Tuesday on trade talks uncertainty after new tariffs from the US and China came into effect from September 1," Tapan Patel, Senior Analyst (Commodities), HDFC Securities said.

On Monday, gold prices stood at Rs 38,449 per 10 gram, while silver was at at Rs 46,880 per kilogram.

In the international market, gold prices ruled at USD 1,530 an ounce in New York while silver was quoted at USD 18.50 an ounce.

"The international spot gold prices pared morning losses and recovered to USD 1,530 an ounce supported by a weaker rupee," he said.

Rupee tumbled 67 paise to 72.09 against the US currency in early trade on Tuesday, tracking weak opening in domestic equities amid strong dollar demand from banks and importers.

The 30-share benchmark BSE Sensex slumped nearly 770 points as investors fretted over deepening economic crisis and global trade tussle.