Gold rose by Rs 100, silver strengthened by Rs 1200

According to the All India Sarafa Association, the price of silver in the national capital on Friday rose by Rs 1,200 to Rs 85,800 per kg, while gold strengthened by Rs 100 to Rs 74,200 per 10 grams.

In the previous session, the precious metal of 99.9 percent purity closed at Rs 74,100 per 10 grams. In the last session on Thursday, silver metal closed at Rs 84,600 per kg. Additionally, gold of 99.9 and 99.5% purity rose by Rs 100 each to Rs 74,200 and Rs 73,850 per 10 gram, respectively.

Traders attributed the rise in gold prices to increased demand from jewellers and stockists as well as a jump in prices of the precious metal in overseas markets.

Globally, Comex gold rose 0.22% to $2,548.80 an ounce. Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said, "Gold continued to rise on Friday as the US dollar and Treasury yields declined after another set of data showing sluggishness in the US labor market."

Silver also rose 0.26% to $29.18 an ounce in the international markets. Manish Sharma, AVP - Commodities & Currencies, Anand Rathi Shares & Stock Brokers, said, "The US jobs data released in recent sessions has shown mixed readings, although it has confirmed that the labour market is cooling enough to warrant consideration of an interest rate cut by the US Federal Reserve at its September meeting."

After a strong monthly rise in July, gold recorded another healthy gain in August and closed 3.6% higher at $2,513 an ounce internationally, according to a report by the World Gold Council (WGC).

India cut customs duty on gold in late July, which has boosted gold demand in the country. The cut was followed by strong buying from jewellery retailers as well as consumers.

According to Manav Modi, Senior Analyst, Commodity Research, Motilal Oswal Financial Services Ltd, after the low jobs data this week, the focus is now on the all-important US non-farm payrolls and unemployment rate data to be released on Friday.