Gold prices surged by another Rs 405 per 10 grams to reclaim the Rs 31,000 mark at the domestic bullion market here today following persistent demand from jewellers and traders on the back of bullish global cues.
Silver too climbed by Rs 415 per kg owing to sustained offtake by industrial users.
Traders said sentiment remained upbeat on positive global cues as the dollar index hovered near two-week lows, with markets also awaiting cues on the outlook for US monetary policy from consumer inflation data and minutes from the Federal Reserve's March meeting.
Gold is perceived as a safe store of value during times of political and financial uncertainty.
Standard gold (99.5 purity) jumped by Rs 405 to close at Rs 31,095 per 10 grams from Tuesday's closing of Rs 30,690.
Pure gold (99.9 purity) also moved up by a similar margin to finish at Rs 31,245 per 10 grams as compared to Rs 30,840 previously.
Silver (.999 fineness) rose by Rs 415 per kg to Rs 38,755 as against Rs 38,340 yesterday.
Globally, gold rose for the fourth day early today as concerns over escalating tensions in Syria, US sanctions on Russia and the US-China trade stand-off weighed on stock markets and helped knock the dollar index to a two-week low.
The metal reached its strongest in a week as appetite for nominally lower-risk assets sharpened.
Spot gold was up at USD 1,345.80 an ounce in early European trade, while US gold futures were trading higher at USD 1,349.10 an ounce. Among other precious metals, silver was up 0.1 percent at USD 16.57 an ounce.