Gold surges Rs 3,000, silver soars Rs 7,700

New Delhi: Gold prices surged Rs 3,000 to Rs 1,30,900 per 10 grams in the national capital tracking firm global cues and weak dollar, according to the All India Sarafa Association. Traders said the end of US government’s shutdown also supported the appeal of the safe-haven asset.

The precious metal of 99.5 per cent purity extended its gains for the third straight day, jumping Rs 3,000 to Rs 1,30,300 per 10 grams from Wednesday’s closing of Rs 1,27,300 per 10 grams. In the local bullion market, gold of 99.9 per cent purity had closed at Rs 1,27,900 per 10 grams in the previous market session. Silver prices skyrocketed Rs 7,700 to Rs 1,69,000 per kilogram.

The white metal had settled at Rs 1,61,300 per kg, up Rs 5,540 on Wednesday. In the international markets, spot gold rose $41.19, or 0.98 per cent, to $4,236.84 an ounce. Spot silver was trading 1.13 per cent higher at $53.86 per ounce in overseas trade.

Saumil Gandhi, Senior Analyst -- Commodities at HDFC Securities, said: “Bullion extended its gains on Thursday, supported by a soft US dollar and growing expectations for more rate cuts following weaker macroeconomic data from the world’s largest economy.