PTI New Delhi

Gold prices inched closer to the psychological mark of Rs 1 lakh per 10 grams as the bullion rates surged Rs 1,650 in the national capital on Monday on weak dollar and uncertainties over US-China trade war driving demand.

According to the All India Sarafa Association, the yellow metal of 99.9% purity reached Rs 99,800 per 10 grams on Monday. Gold of 99.5 per cent purity bounced Rs 1,600 to hit a fresh peak of Rs 99,300 per 10 grams in the local markets.  So far this year, the yellow metal prices have risen Rs 20,850, or 26.41%, per 10 grams since December 31, last year.

"This year, gold and silver prices have experienced significant movements due to ongoing trade tensions, rate cut expectations, geopolitical uncertainties and weakening dollar. So far, gold has soared over 25%, including a 6% gain since April 2 tariff announcement by the US administration," Satish Dondapati, Fund Manager at Kotak Mahindra AMC, said.