New Delhi, Jul 21 (PTI) Gold prices rallied Rs 800 to Rs 1.47 lakh per 10 grams in the national capital on Tuesday on strong physical demand and firm global trends.

The yellow metal of 99.9 per cent purity rose by Rs 800 to Rs 1,47,700 per 10 grams (inclusive of all taxes), according to local traders.

It had closed at Rs 1,46,900 per 10 grams on Monday.

However, silver remained unchanged at Rs 2,21,500 per kilogram (inclusive of all taxes).

Traders said the domestic bullion market witnessed steady buying in gold, while silver remained flat after the recent correction.

“Gold extended its gains on Tuesday as optimism over renewed US-Iran diplomatic efforts eased geopolitical tensions, prompting a pullback in crude oil prices and supporting bullion,” said Saumil Gandhi, Senior Analyst, Commodities, at HDFC Securities.

He added that resilient physical demand, particularly from China, coupled with sustained purchases by central banks continued to support the precious metals.

In the global markets, spot gold gained USD 50.12, or 1.25 per cent, to USD 4,057.89 per ounce and silver rose more than 4 per cent to USD 58.80 per ounce.

“Spot gold pushed higher on Tuesday, climbing to an intraday high of USD 4,082 per ounce as the metal continued to claw back ground lost during last week’s slide below USD 4,000,” Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.

According to Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, silver outperformed on hopes that diplomatic negotiations between the US and Iran could ease regional tensions.

He said China’s latest efforts to stabilise rout in its technology stocks through large-scale state-backed investments have also improved investor sentiment towards industrial metals, including silver.

China has also maintained tight restrictions on fuel exports amid the ongoing conflict in the Middle East, lending further support to energy prices.