The price of gold rose by Rs 100 per 10 grams in the capital Delhi on Friday. Due to fresh demand from local jewelers, the price of gold today reached Rs 74,350 per 10 grams. In the previous trade, the yellow metal of 99.9 percent purity closed at Rs 74,250 per 10 grams. However, according to the All India Sarafa Association, the price of silver remained stable at Rs 87,200 per kg on Friday. Apart from this, gold of 99.5 percent purity rose by Rs 100 to Rs 74,000 per 10 grams, while in the previous trade, it closed at Rs 73,900 per 10 grams, PTI reported.

Rise in demand from retailers

According to the news, traders attributed the rise in yellow metal prices to a rise in demand from local jewelers and retailers in the domestic market. Globally, Comex gold is trading at $2,557. Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Ltd, said gold prices are trading in a limited range as the market expects the US Federal Reserve to cut interest rates in September, while on the other hand, better-than-expected data for the same in the US is limiting gains to higher levels.

Hints from US Fed Chair Jerome Powell

Last week, US Fed Chair Jerome Powell indicated that an interest rate cut was imminent due to concerns over the jobs market. Geopolitical tensions are also rising and fuelling safe-haven investments, Modi said. Silver too was marginally lower at $29.93 an ounce in the international markets. Bets for any major rate cut had eased after data showed the US economy grew at a faster pace in the last quarter while jobless claims eased again.

Bullion prices ahead

Pranav Mer, Vice President, of Research (Commodity & Currency) at BlinkX and JM Financial, said the focus will be on the US Fed as well as the European Central Bank's rate decision next month, as inflation futures within the eurozone countries tend to be lower. Mer said traders will focus on the PCE inflation data to be released later on Friday, which is the Fed's preferred data in setting interest rates and could provide further direction for bullion prices.