Gold prices extended gains for the second day on Tuesday and rose Rs 100, following positive global cues, according to All India Sarafa Association. Traders said global gold prices over a seven-month high amid escalating US-China trade tensions ahead of planned trade negotiations. In Delhi, gold rates of 99.9 percent and 99.5 percent purity climbed Rs 100 each to Rs 33,750 and Rs 33,600 per 10 gram, respectively. However, sovereign gold, held steady at Rs 25,700 per piece of eight gram. Gold prices had advanced by Rs 350 in the previous session.

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Silver prices also followed suit and gained Rs 200 on increased offtake by industrial units and coin makers. Silver ready rose by Rs 200 to Rs 41,000 per kg and weekly-based delivery by Rs 83 to Rs 40,073 per kg. On the other side, silver coins continued to be traded at previous level of Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces.

Globally, gold rate rose to $1,304.81 an ounce and silver prices traded higher at $15.79 an ounce in New York.

An industry lobby for the gems and jewellery has sought reduction of gold import duty to 4 percent, cut and polished diamonds and cut and polished gem stones to its 2.5 percent and relaxation of credit norms for working capital requirements in the forthcoming budget.

All India Gem and Jewellery Domestic Council (GJC) chairman Anatha Padmanabhan in a letter to finance minister Arun Jaitley said the 10 per cent import duty on gold was levied to curb current account deficit (CAD).