New Delhi: Gold prices rose by Rs 600 to Rs 74,100 per 10 gram in the national capital on Tuesday due to fresh buying by jewellers. The precious metal of 99.9 per cent purity had closed at Rs 73,500 per 10 gram on Monday in the previous session. According to All India Sarafa Association, silver prices also rose by Rs 700 to Rs 84,500 per kg from its previous close of Rs 83,800 per kg. Gold of 99.5 per cent purity jumped Rs 400 to Rs 73,750 per 10 gram. It had closed at Rs 73,350 per 10 gram in the previous session.

Traders said gold prices rose due to increased domestic demand. However, a weak trend overseas took some of the shine off gold. In overseas markets, Comex gold was trading lower at $2,532.10 an ounce. "Gold prices remained above the $2,500 level at the start of the European session on Tuesday as traders were not interested in placing big bets ahead of the US inflation report," said Manish Sharma, AVP, Commodities & Currencies at Anand Rathi Shares & Stock Brokers.

The US Consumer Price Index is due to be released on Wednesday, while the Producer Price Index data will be released on Thursday. According to commodity market experts, the data will affect market expectations about the size of the Fed's interest rate cut later this month and provide a new direction to non-yield gold. However, globally, silver was trading marginally higher at $28.70 an ounce.

Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said, "Disappointing US jobs report strengthened the case for Fed policy easing, although uncertainty about the scale of interest rate cuts limited gold's gains." Besides, traders will also closely monitor speeches by FOMC members Michael S Barr and Michelle W Bowman.