Gold prices jump on strong global cues

Gold prices Friday climbed Rs 250 to Rs 34,250 per 10 gram at the bullion market here tracking positive global cues, according to All India Sarafa Association. Silver, however, declined by Rs 50 to Rs 41,300 per kg on subdued demand from industrial units and coin makers.

Traders attributed the rise in the gold prices to US Fed maintaining status quo with the interest rates. The Federal Reserve left the key US lending rate unchanged Wednesday and said it would be "patient" about making any further changes.

However, lacklustre demand from local jewellers capped the hike in the price of precious metal, they added. Globally, gold traded at USD 1,317.66 an ounce and silver stood at USD 15.88 an ounce in New York.

In the national capital, gold of 99.9 per cent and 99.5 per cent purities advanced by Rs 250 each to Rs 34,250 and Rs 34,100 per 10 gram, respectively. Sovereign gold too witnessed an increase of Rs 100 to touch Rs 26,000 per piece of eight gram.

Silver ready slipped by Rs 50 to Rs 41,300 per kg and weekly-based delivery declined by 165 to Rs 40,225 per kg. On the other side, silver coins continued to be traded at the previous level of Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.