With new buying by the stockists, the gold price increased by Rs 600 to Rs 1,00,620 per 10 grams in the capital city of Delhi on Thursday. 99.5 purity gold increased by Rs 500 to Rs 1,00,200 per 10 grams. Meanwhile, the silver price increased by Rs 1,500 to Rs 1,14,000 per kg (inclusive of all taxes). The All India Sarafa Association has confirmed it.

Gold prices increased on Thursday on the back of safe-haven investment demand and purchases at lower prices following the price of gold recording a three-week low in the last session.

Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities, said that the new demand for safe investment has increased due to the demand for resignation of the Federal Reserve Governor by President Donald Trump. This has increased concerns about the independence of the central bank. Gandhi said that after this comment, the US dollar came down from its recent high, which further supported the prices of gold.

In the international market, gold was trading 0.28 percent lower at $ 3,339.04 an ounce in New York. Spot silver also fell 0.32 percent to $ 37.78 an ounce.

Kayanat Chainwala, AVP Commodity Research, Kotak Securities, said that gold remains stable around $ 3,340 an ounce. Investors are waiting for key US macroeconomic data, including unemployment claims, PMI, and existing home sales. However, the main focus remains on Fed Chair Jerome Powell's speech at the Jackson Hole Symposium, as investors are closely watching for signs of a change in monetary policy, especially after last year's comments that signalled the start of a rate-cutting cycle.

Concurrently, minutes of the US Federal Reserve's July meeting revealed that policymakers are still wary of inflation and the labor market. Most of them think that it is too early to reduce interest rates.