Even as the yellow metal touched a three-month high in Tuesday's session, it has again jumped higher in price on the back of political and economic uncertainty. Spot gold climbed higher by 0.1% at $1231.27 per ounce whereas US gold futures were down 0.2% at $1,234.20 an ounce.

In the US, stock markets driven by late round of buying gained and trimmed earlier losses due to panic sell-off.

Also, a continued sell-off across equities is a concern that the government spending as well as the US tax cuts will recede at a faster rate than expected. Though off course at the current moment, the US economy given the trade war situation and the panic in equities does not throw a substantial trigger enough for the US Fed to change its course of gradual rate hikes.

Speaking locally, gold rose by Rs. 130 to to Rs. 32,350 for 10 gm due to increased buying by local jewelers just ahead of the festive season and positive global cues.

It is highly expected given the current macro landscape, from here on gold is likely to gain further and is likely to touch levels of Rs. 37,000 per 10 gm by next Diwali.

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