New Delhi: Gold prices (Gold Price Today) saw a sharp jump on Tuesday. It rose by Rs 1,400 to Rs 74,150 per 10 grams. For the first time in the last one month, such a high rise in gold prices has been seen. In the last trading session, gold closed at Rs 72,750 per 10 grams. The price of silver also rose by Rs 3,150 to Rs 87,150 per kg, from the previous close of Rs 84,000 per kg.

Union Finance Minister Nirmala Sitharaman had announced reduction in import duty on gold and silver in the budget. Since then, there has been a sharp decline in the prices of both metals. On July 23, gold fell by Rs 3,350 to Rs 72,300 per 10 grams. After that, the prices of gold and silver mostly declined and no major jump was seen.

Why did the price of gold increase

Traders say that the demand from jewelers has increased and the global trend is also in favor of this precious yellow metal. Due to this, prices are rising. Saumil Gandhi, Senior Commodities Analyst at HDFC Securities, said, "It is expected that the US Federal Reserve (Fed) will make a big cut in interest rates. Due to this, investors are quite bullish on gold."

According to Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, Comex gold prices started the week with marginal gains, closing at $2,541 after hitting a record high of $2,549.90. "Gold demand has increased amid the resilience of the US economy, geopolitical tensions and recent comments by the Chicago Fed president," he said.

Silver is also trading flat at $30.19 an ounce in the international markets. "Gold is trading steady above $2,500 an ounce. Key macroeconomic data including Euro-zone CPI inflation will be released later on Tuesday which will provide direction to bullion prices," according to Praveen Singh, Associate VP, Fundamental Currencies & Commodities, Sharekhan by BNP Paribas.