New Delhi, October 29: Gold prices saw a significant recovery on Wednesday, rising by Rs 2,600 to Rs 1,24,400 per 10 grams in the national capital, reversing a two-day losing streak. The surge was driven by increased safe-haven demand ahead of the US Federal Reserve's upcoming policy decision.

According to the All India Sarafa Association, gold of 99.5% purity surged by Rs 2,600 to Rs 1,23,800 per 10 grams (inclusive of taxes), compared to the previous close of Rs 1,21,200 per 10 grams. Meanwhile, gold of 99.9% purity settled at Rs 1,21,800 per 10 grams on Tuesday.

The uptick in gold prices reflects a growing sense of caution in global markets as investors seek the precious metal as a safe investment option.