New Delhi: Gold prices rose for the second consecutive day. Local jewelers increased their purchases of gold and there were signs of gold promotion from global markets. Due to this, the price of gold in the national capital rose by Rs 500 to Rs 74,600 per 10 grams on Wednesday. It closed at Rs 74,100 per 10 grams on Tuesday. Gold prices have risen by more than Rs 1,000 in the last two days.

According to the All India Sarafa Association, the price of silver also rose by Rs 500 to Rs 85,000 per kg on Wednesday. In the previous session, silver closed at Rs 84,500 per kg. Meanwhile, gold of 99.5 percent purity also rose by Rs 500 to Rs 74,250 per 10 grams, which was earlier Rs 73,750 per 10 grams.

Traders said that the market was positive due to increased buying by local jewelers and retailers, which led to a rise in gold prices. In the international markets, Comex gold is trading 0.31 percent higher at $ 2,550.90 per ounce.

"Gold prices rose on Wednesday due to weakness in the US dollar and a fall in treasury yields," said Saumil Gandhi, senior analyst, commodities at HDFC Securities. Also, selling in the stock market and risk aversion sentiment have increased investment in safe-haven assets like gold. This also supported gold prices.

"Traders will now take investment decisions based on the US inflation report, which will determine the extent of interest rate cuts at the US Federal Reserve meeting scheduled on September 18-19," said Manish Sharma, AVP, Commodities & Currencies, Anand Rathi Shares & Stock Brokers.