Gold prices rallied Rs 256 to Rs 40,441 per 10 gram in the national capital on Wednesday, led by strong buying in global markets, according to HDFC Securities.
On Tuesday, the yellow metal had closed at Rs 40,185 per 10 gram.
"Spot gold for 24 Karat in Delhi rose by Rs 256 on strong buying in global gold prices amid US-China trade deal concerns," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
In a statement on Tuesday, US officials said that the trade deal with China set to be signed on Wednesday does not include a deal to roll back tariffs imposed on most Chinese goods.
Silver also witnessed an increase in buying with prices rising by Rs 228 to Rs 47,272 per kg from Rs 47,044 per kg.
Meanwhile, the Indian rupee opened on a cautious note in early trade on Wednesday and fell 14 paise to 71.01 against the US dollar as concerns over the US-China trade deal weighed on investor sentiments.
In the international market, both gold and silver were trading with gains at USD 1,552 per ounce and USD 17.83 per ounce, respectively.