Gold prices jump Rs 48,948 per 10 gram, silver drops to Rs 51,740 per kg

The price of 22-carat gold inched upwards to Rs 47,910 per 10 gram in New Delhi

Gold prices on Monday jumped to Rs 48,948 from Rs 48,888 per 10 gram, while silver prices edged marginally lower to trade at Rs 51,740 from Rs 51,745 per kg, acording to India Bullion 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 inched upwards to Rs 47,910 per 10 gram. Gold in 24 carat in the national capital was retailing at Rs 49,110. In Chennai 22-carat traded at Rs 47,040 while the price of 24-carat gold price in Chennai was at Rs 51,330. In Mumbai, the rate was Rs 47,960 for 22 carat gold, according to the Good Returns website.

On MCX, gold prices rose 0.42% to Rs 48,980 per 10 gram. Gold has struggled to extend gains after hitting record high of Rs 49,348 last week. Silver prices also rallied today on MCX. Silver futures on MCX climbed 0.55% to ₹52,900 per kg.

Gold imports, which have a bearing on the current account deficit (CAD), plunged 94 per cent to $688 million (about Rs 5,160 crore) during the first quarter of 2020-21 due to a significant fall in demand in the wake of the Covid-19 pandemic, according to data from the Commerce Ministry.

Imports of the yellow metal stood at $11.5 billion (about Rs 86,250 crore) in the corresponding period of 2019-20.

Similarly, silver imports during the quarter too dipped 45 per cent to $575 million (about Rs 4,300 crore).

The decline in gold and silver imports has helped in narrowing the country's trade deficit, difference between imports and exports, to $9.12 billion during April-June 2020-21 against $45.96 billion in the year-ago period.

Gold imports have been recording a negative growth since December last year. The fall in March, April, May and June was to the tune of 62.6 per cent, 99.93 per cent, 98.4 per cent and 77.5 per cent, respectively

India is the largest importer of gold, which mainly caters to demand of jewellery industry. In volume terms, the country imports 800-900 tonnes of gold annually.

Gems and jewellery exports declined by about 72 per cent to $2.7 billion in April-June 2020.

In the international market, gold was trading lower at $1807.40 per ounce while silver price was slightly up at $19.33.