Silver Surges Rs 3,100 to Rs 95,950/kg, Gold Up Rs 130

New Delhi, May 28 (PTI) Silver rallied strongly by Rs 3,100 to Rs 95,950 per kg in the national capital on Tuesday, while gold went up Rs 130, in line with strong global trends.

According to HDFC Securities, rising for the second straight session, silver prices surged Rs 3,100 to nearly a two-week high of Rs 95,950 per kg. It had closed at Rs 92,850 per kg on Monday.

Meanwhile, the yellow metal prices climbed Rs 130 to Rs 72,950 per 10 grams. It had finished at Rs 72,820 per 10 grams in the previous session.

In the international markets, spot gold at Comex was trading at USD 2,346 per ounce, up USD 2 from the previous close.

"Gold traded with a marginal gain in European trading hours on Tuesday, aided by a weak US dollar.

"Traders are now awaiting crucial US inflation data, which could shed light on how soon the US Federal Reserve can reduce interest rates, potentially providing further direction for gold prices," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

Silver also traded higher at USD 31.50 per ounce in the overseas markets.

According to market experts, silver prices soared, breaching the USD 31-level, signalling the end of the bearish correction.

Meanwhile, in the futures trade on the MCX, gold fell Rs 169 to trade at Rs 71,840 per 10 grams. The most-traded June contract of gold hit an intra-day low of Rs 71,762 per 10 grams.

Further, silver contracts for July delivery were also trading lower by Rs 294, or 0.39 per cent, to Rs 94,314 per kg on the bourse.

"Gold prices were weak in the first half of the session in both Comex and MCX markets. Following a strong rally on Monday, prices paused within a small range of USD 2,340-2,353 in Comex and Rs 71,770-72,030 in MCX.

"The mixed market reaction came after renewed tensions in the Middle East. Traders will focus on the Personal Consumption Expenditures (PCE) price index release on Friday, which will provide hints about inflation," Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said.