New Delhi, 9 May

Gold prices rallied Rs 480 to Rs 99,730 per 10 grams in the national capital on Friday as rising tensions between India and Pakistan triggered demand for safe haven assets, according to the All India Sarafa Association.

The precious metal of 99.9 per cent purity had ended at Rs 99,250 per 10 grams in the previous market close.

Gold of 99.5 per cent purity climbed Rs 480 to Rs 99,280 per 10 grams on Friday. It had closed at Rs 98,800 per 10 grams on Thursday.

"Gold prices are holding steady as easing trade tensions take some pressure off the market," Abans Financial Services' Chief Executive Officer Chintan Mehta said.

However, geopolitical risks stemming from soaring India-Pakistan tensions, Russia-Ukraine war and Israel's plans to take full control of Gaza continue to simmer in the background and may keep underlying support for gold intact, Mehta said.

These developments could continue to drive demand for gold as a hedge against uncertainty, he added.

As per the Sarafa Association, silver prices also increased Rs 200 to Rs 98,400 per kg. The white metal had settled at Rs 98,200 per kg in the previous market session.

In the international markets, spot gold rose USD 22.37 to USD 3,328.09 per ounce.

Spot silver in the overseas markets went up 0.23 per cent to USD 32.54 per ounce.

HDFC Securities' Senior Analyst of Commodities Saumil Gandhi said investors will be awaiting for speeches of Federal Reserve's FOMC (Federal Open Market Committee) members later in the day that could impact the future direction of the US dollar and gold prices.