
Tension still brews on the Korean front as North Korea is digging in its heels over the UN resolution and the sanction over its most powerful nuclear test, analysts said. Any major uncertainty, according to experts, is directly proportional to the appeal of safe haven assets. Simply put, the higher the turmoil, the greater the risk aversion, which pushes investors more towards safe asset classes, including gold. Bullion traders said robust demand from local jewellers as well as retailers too fed the rally in gold prices.
Globally, gold rose by 0.08% to USD 1,323.60 an ounce after hitting a two-week low of $1,318.96. Silver too edged up 0.03% to $17.75 an ounce in Singapore.
Read More: Rupee Optimism Holds Despite Shock Slowdown in India Growth
In the national capital, gold of 99.9% and 99.5% purity surged Rs650 each to Rs31,000 and Rs30,850 per 10 grams, respectively. The precious metal had lost Rs650 in the last two days. Sovereign continued to be traded at the previous level of Rs24,700 per piece of eight grams.