Gold prices rose sharply by Rs 450 to regain the Rs 29,000-mark and trade at Rs 29,100 per 10 grams at the bullion market tracking a firm trend overseas amid fresh buying by local jewellers.
Silver followed suit to recapture the Rs 41,000-mark by climbing Rs 1,050 to Rs 41,350 per kg on increased offtake by industrial units and coin makers.
Bullion traders said a firm trend overseas after the US Federal Reserve raised key lending rates amid increased buying by local jewellers, mainly led to rally in gold prices.
The Federal Reserve, as was widely expected, raised the benchmark interest rate by a quarter percentage point last night, but gave a more dovish outlook for future hikes.
Globally, gold rose by 0.44 per cent to USD 1,225.10 an ounce and silver by 0.63 per cent to USD 17.43 an ounce in Singapore.
In the national capital, gold of 99.9 and 99.5 per cent purity surged by Rs 450 each to Rs 29,100 and Rs 28,950 per 10 grams respectively. The precious metals had lost Rs 400 in last two days.
Sovereign, also moved up by Rs 100 at Rs 24,300 per piece of eight grams.
Following gold, silver ready flared up by Rs 1,050 to Rs 41,350 per kg and weekly-based delivery by Rs 1,040 to Rs 41,010 per kg.
Silver coins, however, held steady at Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.