In Thursday's trade, gold price in the international market surged amid hopes that the US Federal Reserve will halt its rate tightening cycle this year. Also, the impasse between the US President and democrats concerning funding of a border wall pulled down the US dollar.
Spot gold at $1,295.84 per ounce as at 0556 GMT, traded close to Friday's peak price of $1,298.42 per ounce, gold price last recorded in mid-June last year. Also at the same time, US gold future gathered momentum, gaining 0.4 percent to $1,297.20 per ounce.
The minutes from the Federal Reserve's meeting as on December 18-19 provided that policymakers may go slow in their future interest rate hikes. Also, an alarm around the possibility of recession in the US is providing support to the precious yellow metal.
In the domestic market also gold is gaining ground pushed by wedding season demand as jewelers have increased buying to meet the demand for gold during the wedding season. 22 K gold is priced higher by Rs. 150 per 10 gm at Rs. 31,530 while 24 K gold has also increased in price by the same amount to Rs. 32,700 per 10 gm.