Gold prices zoom to 56,181/10gm

New Delhi: Gold prices jumped Rs 1,365 to Rs 56,181 per 10 gram in the national capital on Wednesday following a strong rally in global market.

Silver also depicted a strong trend as it zoomed Rs 5,972 to Rs 72,726 per kg from Rs 66,754 per kg in the previous trade, it said. The precious yellow metal had closed at Rs 54,816 per 10 gram in the previous trade.

"Spot gold prices for 24 carat in Delhi rose by Rs 1,365 with strong rally in international prices," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

In the international market, gold was quoting with gains at $2,032 per ounce, while silver was trading at $26.40 per ounce.

"Gold prices scaled new highs on weak dollar and concerns over economic growth amid rising virus cases," Patel said.

Sriram Iyer, Senior Research Analyst at Reliance Securities, said, "Investors continue to remain buyers in the safe-haven gold as they expect that the metal will hold its value better than other assets as fallout from Covid-19 cripples the global economy."

Kishore Narne, Head - Commodity & Currency, Motilal Oswal Financial Services said gold and silver have been the best performing assets so far this year with 40 per cent and 50 per cent returns, respectively, and the uptrend is likely to continue.

With central banks pushing 'unprecedented amounts' of liquidity, trade war concerns, geo-political uncertainty, rising Covid-19 infections and threat of a second wave of infections, prices of both precious metals are likely to go higher, Narne added.