Gold price on Wednesday jumped by Rs 400 to Rs 75,050 per 10 grams in the national capital on the back of fresh buying from jewellers, according to the All India Sarafa Association.
The precious metal had closed at Rs 74,650 per 10 grams in the previous session.
However, silver prices remained flat at Rs 94,400 per kg.
In sarafa markets, the yellow metal was trading at Rs 75,050 per 10 grams, up by Rs 400 against the previous close, the association said.
Traders said gold prices saw an uptrend due to rise in domestic demand.
In the international markets, spot gold was trading higher at USD 2,380.50 per ounce, up USD 12.60 per ounce.
"Gold prices traded positively. The buying was driven by expectations of weak inflation numbers to be release on Thursday evening in US, which could prompt rate cuts by US Federal Reserve in the September meeting," Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said.
Additionally, silver prices was also up at USD 31.25 per ounce globally.
"Spot gold closed with a gain of around 0.20 per cent at USD 2,363 per ounce on Tuesday, as the Fed Chair Powell, in his testimony to the US Senate Banking Committee, offered largely a balanced view on the US economy and the Fed's monetary policy," Praveen Singh, Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, said.
In his testimony, Fed Chair Powell said that the inflation trend is encouraging; however, the US central bank will need more data to gain confidence in cutting rates.
He (Powell) cautioned that lowering interest rates too little or too late could put the economy and the labour market at risk as inflation is not the only risk the US economy faces now.
"The US Consumer Price Index (June) data will be released on Thursday, which is crucial as traders look for possibility of rate cuts in September," Singh added.
