Gold prices spurted by Rs 440 to Rs 79,390 per 10 grams on Wednesday driven by fresh buying by stockists, beginning the New Year on a strong note.

The precious metal had traded at Rs 78,950 per 10 grams on Tuesday.

Gold of 99.5 per cent purity appreciated Rs 440 to Rs 78,840 per 10 grams. The metal had ended at Rs 78,400 per 10 grams in the previous trading session.

"So far this week, gold prices have been trading within tepid ranges due to the Christmas holiday season, and market participants are looking for more fundamental cues to spark the next phase of market action in either direction," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

Silver also regained its sheen by jumping Rs 800 to Rs 90,500 per kg on Wednesday. The white metal finished at Rs 89,700 per kg in the previous session.

In futures trade on the MCX, gold contracts for February delivery close flat at Rs 76,893 per 10 grams on Wednesday.

Silver contracts for March delivery slipped Rs 28 or 0.03 per cent to settle at Rs 87,550 per kg in the futures trade on the commodities bourse.

The Multi Commodity Exchange (MCX) carried out trading in the first half. However, trading will be closed for the evening session on Wednesday, on account of New Year's Day.

All the overseas markets were also closed for the New Year holiday, Gandhi said.

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