Gold prices climbed by ₹2,200 to ₹1,25,600 per 10 grams in the national capital on Friday on fresh buying by stockists and jewellers, according to the All India Sarafa Association.
The precious metal of 99.9% purity had closed at ₹1,23,400 per 10 grams on Thursday.
In the local bullion market, gold of 99.5% purity jumped by ₹ 2,200 to₹1,25,000 per 10 grams (inclusive of all taxes) from the previous close of ₹1,22,800 per 10 grams.
"Gold advanced on the last trading day of the week, buoyed by depreciation in the rupee," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
The rupee pared intra-day losses to settle flat at 88.69 against the US dollar on Friday, as weak domestic equities and a firm greenback in overseas markets offset the support from lower crude oil prices.
However, silver prices declined by ₹2,000 to ₹1,53,000 per kilogram (inclusive of all taxes) on Friday. The white metal had settled at ₹1,55,000 per kg on Thursday, as per the association.
Gandhi added that a high-stakes meeting between US President Donald Trump and his Chinese counterpart Xi Jinping ended on a positive note but failed to ease concerns about long-term competition between the two largest economies. This uncertainty has renewed demand for gold as a safe-haven asset.
Globally, spot gold slipped by 0.52% to USD 4,003.49 per ounce while silver was marginally higher at USD 48.97 per ounce
