New Delhi: Gold prices rallied by Rs550 to Rs75,700 per 10 grams in the local market on Tuesday on the back of fresh buying by jewellers as well as strong trends in the international markets. According to All India Sarafa Association, the precious metal rates had closed at Rs75,150 per 10 grams on Monday. In the national capital, gold of 99.9 per cent and 99.5 per cent purity quoted higher at Rs75,700 per 10 grams and Rs75,350 per 10 grams, respectively.

Traders attributed the rise in gold prices to a pick-up in demand by local jewellers and retailers in the domestic market. In addition, silver prices also jumped by Rs400 to Rs94,400 per kg. It had ended at Rs94,000 per kg in the previous session. “Gold and silver prices witnessed a sharp recovery on the back of rate cut expectations. “No major data points were scheduled on Monday, however, comments from US Federal Reserve Chair Jerome Powell were in limelight,” Manav Modi, Senior Analyst, Commodity Research, Motilal Oswal Financial Services Ltd (MOFSL), said.

Fed Chair Powell said that second quarter data has given policymakers greater confidence that inflation is heading down to the central bank’s 2 per cent goal. Powell reiterated that the US central bank is in no rush to cut rates but he also raised concerns regarding ease off in labour market and increase in deficits.