Gold price rises to Rs 54,004 per 10 gm, silver falls to Rs 64,925 per kg

Gold prices on Wednesday jumped marginally to Rs 54,004 per 10 gram while prices of silver declined to Rs 64,735 from Rs 64,925 per kg, according to Indian Bullions and Jewellers Association. 

Gold jewellery prices vary 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 rose to Rs 52,450 per 10 gram. Gold in 24 carat in the national capital was retailing at Rs 53,750. In Chennai 22-carat climbed steadily to Rs 52,080 while the price of 24-carat gold price in Chennai was at Rs 56,810. In Mumbai, the rate was Rs 52,300 for 22 carat gold, according to the Good Returns website.

On MCX, October gold futures climbed 1.67% to  an all-time high of Rs 54,612 per 10 gram. Siver futures also jumped 6.41% to Rs 69,962 per kg on Wednesday. 

MCX has decided to accept gold and silver bars refined at domestic refineries for deliveries, subject to final regulatory approval. MCX received the approval of Sebi for the launch of Gold Mini options with Gold Mini (100 grams) bar as underlying, MCX said in a statement.

"Spot gold prices for 24 carat in Delhi were trading up by Rs 97 with rupee depreciation," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

The rupee pared some of its initial losses and settled 3 paise down at 75.04 (provisional) against the US dollar on Tuesday.

In international market, gold surged to a record high on Tuesday after Democrats and the White House appeared closer to agreement on new stimulus to help the coronavirus-hit economy and a broad swath of Wall Street edged up as investors awaited more aid from Washington.

Gold surged to the psychologically important level of $2,000 an ounce after the US Senate's top Democrat said a new round of coronavirus relief was moving in the right direction, though the two sides remain far apart.

Spot gold prices rose $18.5543, or 0.94%, to $1,995.25 an ounce. Earlier, spot gold was bid at $2,000.11 an ounce.

Bullion has soared more than 30% so far this year, supported by lower interest rates and safe-haven buying on concerns Federal Reserve policy and government stimulus are debasing the currency.