New Delhi: Gold prices jumped Rs850 to Rs99,340 per 10 grams in the national capital on Thursday amid a rise in precious metal prices in the overseas markets, according to the All India Sarafa Association.The yellow metal of 99.5 per cent purity climbed Rs800 to Rs98,800 per 10 grams . However, silver prices went lower by Rs100 to Rs1,07,000 per kilogram on Thursday.

The most traded gold contracts for August delivery bounced by Rs1,585 to trade at Rs98,289 per 10 grams. Subsequently, the contracts for October delivery rallied Rs1,520 to Rs99,214 per 10 grams on the Multi Commodity Exchange (MCX). “Gold prices surged higher on Thursday as escalating US-Iran tensions reignited safe-haven demand and weaker-than-expected US inflation data bolstered bets of interest rate cuts from the Federal Reserve,” Sriram Iyer, Senior Research Analyst at Reliance Securities, said. Meanwhile, spot gold increased by $15.74 per ounce or 0.47 per cent to $3,370.87 per ounce in the international markets.