Gold price on Wednesday rose to Rs 48,600 for 10 gm from Rs 47,450 and silver price trending at Rs 65,000 per kg, according to the Good Returns website.
Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.
In New Delhi, the price of 22-carat gold is at Rs 44,550 per 10 gm, while in Chennai it fell to Rs 42,570. The rate in Mumbai was Rs 44,200 according to the website. The price of 24-carat gold in Chennai was Rs 46,450 per 10 gm.
Gold prices in the national capital rose by Rs 83 to Rs 45,049 per 10 gram on Tuesday following rally in international precious metal prices, according to HDFC Securities.
In the previous trade, the precious metal had closed at Rs 44,966 per 10 gram. Silver also gained Rs 62 to Rs 64,650 per kg from the previous close of Rs 64,588 per kg.
In the international market, Gold prices rose to their highest in more than a week on Tuesday, after the metal’s appeal was bolstered by a weaker dollar and lower U.S. Treasury yields.
Spot gold was up 0.4% to $1,736.06 an ounce by 1245 GMT after hitting its highest level since March 25 at $1,738.65. U.S. gold futures gained 0.5% to $1,737. “A softer dollar is the main reason for the bid coming into gold … and also the yields, which during the past week have not done a great deal,” Saxo Bank analyst Ole Hansen said.
The dollar fell 0.4% against a basket of rivals, making gold more affordable for holders of other currencies, while benchmark U.S. Treasury yields were lower.
However, risk sentiment in wider financial markets remained upbeat, with global equities at record highs on strong economic data from China and the United States, reducing some demand for safe-havens assets such as gold. “For the gold story to return to a firmer footing … we need to see either some geopolitical concerns or inflation pick up more aggressively than the market has been pricing,” Hansen said.
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