JEDDAH/DUBAI— Gold has so far responded well to last Friday's stronger-than-expected US nonfarm payrolls report. Following a renewed surge in speculative buying, it forced some profit-taking but so far key the retracement support at $1,247/oz has yet to be challenged.

Overall the market remains supported from investors looking for diversification and a hedge against risks such as a stock market correction, North Korea, Trump uncertainty, and potential announcements at the Fed's annual economic Symposium at Jackson Hole on August 24-26.

Gold prices jumped at the domestic bullion market here today on sustained offtake from investors and jewelry stockists driven by surging global cues.

Silver gained Rs 600 per kg on increased offtake by industrial units.

Standard gold (99.5 purity) advanced by Rs 140 to conclude at Rs 28,580 per 10 grams from yesterday's closing level of Rs 28,440.

Pure gold (99.9 purity) also added a similar margin to end at Rs 28,730 per 10 grams compared to Rs 28,590 previously.

Silver (.999 fineness) zoomed up by Rs 600 per kg to finish at Rs 37,875 from Rs 37,275 earlier.

Globally, Gold rose after North Korea said it is considering an attack on the US Pacific territory of Guam just hours after President Donald Trump warned Pyongyang that any threat to the US would be met with "fire and fury".

Spot gold rose 0.6 per cent to $1,267.79 per ounce at early trade.

Silver rose 1.2 per cent to $16.70 per ounce.

A recovery in the dollar, potentially driven by a strong inflation print this Friday, currently provides the biggest downside risk.

Despite the stronger jobs report, US real yields have stayed relative calm while the recent strength in the euro has also led to some (albeit smaller) JPY appreciation.

Investors trading gold through exchange-traded products have been continuous sellers during the past month. This despite the firm rejection below $1,215/oz on July 7 and the subsequent rally. — SG/Agencies