Gold jumps higher trades at 39,750 level

Gold jumps higher trades at  39,750 level

Gold prices jumped in the futures trade on January 21, supported by positive global cues as the yellow metal rose to a near two-week high in international markets.

Gold prices are gaining support from weakness in the equities and Indian currency. Besides, rising tension in West Asia and elevated crude oil prices have boosted the demand for gold as a safe-haven metal.

Nifty slipped below 12,200, while Sensex fell 200 points in early deals. The rupee opened at 71.18 per dollar on January 21, lower by 8 paise against the previous day's close of 71.10 on some buying of the greenback by banks and importers.

Around 09:25 hours IST, the MCX Gold traded with a gain of Rs 211, or 0.53 percent, at Rs 40,158 per 10 gram

Gold and silver traded almost flat on January 20 due to holidays in the US. Spot gold in the international market closed around $1,560 and silver closed around $18 per troy ounce.

Fresh tensions in the Middle East and correction in the equity market supported the prices of both precious metals.