Gold prices zoom Rs 280, crosses Rs 34,000 mark

Gold prices Thursday surged by Rs 280 to cross Rs 34,000-mark in the national capital on strong global sentiment and fresh buying from local jewellers, according to All India Sarafa Association.

The prices of yellow metal rose to Rs 34,020 per ten gram.

Tracking gold, silver too increased by Rs 710 to Rs 39,060 per kg on increased offtake by industrial units and coin makers.

Traders said apart from increased buying from jewellers, robust global trends where the precious metal surged to a five-year high also pushed the prices higher.

Globally, gold was trading higher at USD 1,385.54 an ounce in New York, while silver was up at USD 15.35 per ounce.

"Spot gold jumped to a five-year high of USD 1,386 an ounce on hopes that the US Federal Reserve would cut interest rates later this year. In the latest Fed policy meeting, the US central bank hinted an interest rate cut if the economic outlook weakens.

"Gold has been trading on a positive note for the last four weeks on growing geopolitical concerns and weak economic releases from US and China that lifted its safe haven appeal. Weak global growth forecast amid growing trade war tensions also stoked investors towards the yellow metal. Similar sentiments has been seen in silver as well," said Hareesh V, Head-Commodity Research, Geojit Financial Services.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity zoomed Rs 280 each to Rs 34,020 and Rs 33,850 per 10 gram, respectively.

Sovereign gold, however, held steady at Rs 26,800 per eight gram.

Meanwhile, silver ready rose by Rs 710 to Rs 39,060 per kg, while weekly-based delivery gained Rs 742 to Rs 38,044 per kg.

Price of silver coins held flat at Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.