Gold prices up Rs 87 on weaker rupee, firm global markets

Gold prices on Wednesday rose Rs 87 to Rs 38,842 per 10 grams in the national capital on firm global trends and a weaker rupee, according to HDFC Securities.

On Tuesday, gold had closed at Rs 38,755 per 10 gram.

"Spot gold prices for 24 karat in Delhi were quoted Rs 87 up on a weaker rupee and firm trade in global markets. The spot rupee was trading almost 11 paise weaker against the dollar during the day," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

The rupee depreciated by 11 paise to 70.95 against the US dollar in morning trade on Wednesday, as investors were cautious ahead of the US Federal Reserve's interest rate decision.

Silver prices also gained Rs 450 to Rs 47,220 per kg, from Rs 46,770 per kg, in the previous trade.

In the international market, gold was trading higher at USD 1,489.50 per ounce and silver at USD 17.82 an ounce.

"The international gold prices were trading higher during the day on Wednesday as traders are bracing for another rate cut from US Federal Reserve," he added.