Gold rallies Rs 2,000 to Rs 1,27,900/10g in Delhi markets

Gold prices rallied by Rs 2,000 to Rs 1,27,900 per 10 grams in the national capital on Wednesday amid firm global trends, according to the All India Sarafa Association.

The precious metal of 99.5 per cent purity jumped by Rs 2,000 to Rs 1,27,300 per 10 grams from Monday's closing of Rs 1,25,300 per 10 grams.

The yellow metal has added Rs 3,300 per 10 grams in the last two sessions.

In the local bullion market on Monday, gold of 99.9 per cent had settled with a gain of Rs 1,300 at Rs 1,25,900 per 10 grams.

Bullion markets were closed on Tuesday following a blast near Red Fort on November 10.

"Gold traded positive for another session, supported by gold in the international markets holding firm around USD 4,100 per ounce.

"The optimism over a potential US government reopening is driving sentiment, as it would allow the release of key economic data, critical for the Federal Reserve's rate outlook in the December meeting," said Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities.

Meanwhile, silver prices also skyrocketed by Rs 5,540 to Rs 1,61,300 per kilogram on Wednesday. The white metal had finished at Rs 1,55,760 per kg on Monday, as per association.

In the overseas markets, spot gold was trading flat at USD 4,127.59 an ounce while spot silver rose 0.86 per cent to USD 51.66 per ounce.