Gold prices scaled a more than one-week peak, as the dollar slipped after dovish remarks from the US Federal Reserve Chairman Jerome Powell boosted the case for an interest rate cut later this month, Reuters reported.
Under normal circumstances, gold and dollar share an inverse relationship. Since international gold is dollar-denominated, any weakness in the dollar pushes up gold prices.
An uptick in demand by jewellers at major spot markets also gave a leg up to gold prices in futures trade.
Around 11:50 am, MCX Gold traded at Rs 34,998 per 10 grams, up by Rs 159.
Silver prices also inched up on raised orders by industrial units and coin makers.
MCX Silver traded Rs 38,360 a kilo, up by Rs 40, around that time.