Pick-up in demand from local jewellers at the domestic spot market led to the rise in gold prices, analysts said.
New Delhi: Gold prices on Friday surged Rs 475 to Rs 38,420 per 10 gram at the bullion market here, on fresh buying from jewellers, according to the All India Sarafa Association.
Tracking gold, silver also gained Rs 378 to Rs 44,688 per kg on increased offtake by industrial units and coin makers.
Pick-up in demand from local jewellers at the domestic spot market led to the rise in gold prices, analysts said. They, however, added that the weak global trend restricted the gains.
Globally, gold was trading lower at USD 1,513 an ounce in New York and silver was down at USD 17.26 an ounce.
"Globally, gold witnessed selling after US retail sales data showed strength, signalling retail consumption growth. The improved investment sentiment supported higher trade in global equities lowering demand for safe haven in gold," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
However, public unrest in Hong Kong and trade war worries may limit the fall in international gold prices, he added.
On Thursday, the bullion market was closed in the national capital on account of 'Independence Day'.
In the national capital, gold of 99.9 per cent and 99.5 purity on Friday surged Rs 475 each to Rs 38,420 and Rs 38,250 per 10 gram, respectively.
Sovereign gold held flat at Rs 28,700 per eight grams.
Silver ready rose Rs 378 to 44,688 per kg, while weekly-based delivery advanced by Rs 594 to Rs 43,824 per kg.
Silver coins were in good demand and traded higher by Rs 1,000 at Rs 90,000 for buying and Rs 91,000 for selling of 100 pieces.