Gold price hovers at Rs 48,450 per 10 gm, silver climbs to Rs 48,500 a kg

Gold prices on Monday rose to Rs 48,450 from Rs 48,401 per 10 gram, while silver climbed to Rs 48,500 from Rs 48,110 per kilogram on Saturday, according to Good Returns website.

Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making charges.

In New Delhi, the price of 22-carat gold is holding steady at Rs 47,250 per 10 gram, while in Chennai it is Rs 46,450. In Mumbai, the rate is Rs 48,300, according to the Good Returns website. The price of 24-carat gold prices in Chennai is Rs 50,626. 

On MCX, August gold futures fell 0.13 per cent to Rs 48,244 per 10 gram. Silver July futures also collapsed by 0.50 per cent to Rs 48,123 per kilogram. MCX has decided to accept gold and silver bars refined at domestic refineries for deliveries, subject to final regulatory approval.

On Monday, Gold prices in the national capital went down marginally by Rs 26 to Rs 49,245 per 10 gram on Monday, according to HDFC Securities.  "Spot gold prices for 24 carat in Delhi were trading marginally down by Rs 26 with weak rupee appreciation," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

The rupee settled 7 paise higher at 75.58 (provisional) against the US dollar on Monday. In the international market, both gold and silver were trading flat at USD 1,769.67 per ounce and USD 17.81 per ounce, respectively.

Gold has proved to be a safe bet against a slowing global economy due to the increasing number of coronavirus (Covid-19) cases and geopolitical tensions with China. Gold has proved to be the only asset class in these uncertain times to offer 23 per cent returns in the first half of calendar 2020 and a staggering 41.6 per cent in the last one year. Since its level of Rs 27,840 per 10g in January 2017, gold investors have become richer by 72.6 per cent.

In international markets, gold prices reported a gain of 16.7 per cent in the first half of calendar 2020. Gold price in the London spot market is currently quoting at $1771.3 an oz, a rise of phenomenal 47.6 per cent since October 2018 and 25.7 per cent in one year.