New Delhi: The trend of rising gold prices continues. Amid strong global trends, gold buying by jewelers also increased in the domestic markets on Friday. Due to this, the price of gold in the national capital on Friday jumped by Rs 1,200 and it jumped to a two-month high of Rs 75,550 per 10 grams. On Thursday, this precious metal closed at Rs 74,350 per 10 grams.

According to All India Sarafa Association, the price of silver also rose for the fourth consecutive session due to increased demand from industrial units and coin makers. Silver showed a huge jump of Rs 2,000 and reached Rs 89,000 per kg. The white metal had closed at Rs 87,000 per kg in its previous close on Thursday. The metal has risen by Rs 5,200 per kg in the last four sessions.

Why is the price of gold increasing

Traders say the surge in gold prices is due to strong international cues. Also, buying is also increasing due to weddings and the ongoing festive season, which has increased the demand. In July, gold prices in the local markets fell sharply by Rs 5,000 to Rs 71,050 per 10 grams after the government reduced the basic customs duty on gold and silver from 15 percent to 6 percent.

"Comex gold prices hit a new all-time high on Friday as the dollar weakened, as investors expect a rate cut by the US Federal Reserve next week," said Kaynat Chainwala, AVP, Commodity Research, Kotak Securities. According to commodity market experts, low interest rates are positive for bullion prices as it leads investors to turn to assets that are not affected by falling interest rates.

Investors are liking gold

"Gold prices rose above $2,550 an ounce while silver hit a three-week high after the European Central Bank announced a key rate cut and the dollar index weakened," said Rahul Kalantri, Vice President, Commodities, Mehta Equities Ltd.

According to Devya Gaglani, senior research analyst at Axis Securities, Comex gold prices saw a strong rally of 1.9 per cent, the strongest since August 16 this year. Gaglani said, "The latest inflation data this week has significantly increased the possibility of a rate cut by the Fed next week. This is causing investors to turn to gold."