Gold price jumps to Rs 45,177 per 10 gm; silver rallying at Rs 50,975 a kg

Gold prices on Monday jumped to Rs 45,177 from Rs 44,977 per 10 gram while silver prices also climbed nearly Rs 500 to trade at Rs 50,975 per kg, according to Indian 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 rose to Rs 47,510 per 10 gram. 24-carat in the national capital was retailing at Rs 49,010. In Chennai 22-carat traded at Rs 46,900 while the price of 24-carat gold prices in Chennai was at Rs 51,180. In Mumbai, the rate was Rs 48,000, according to the Good Returns website. 

On MCX, gold prices dropped 0.01% to ₹48,872 per 10 gram after falling 0.6% in the previous session. Gold has struggled to extend gains after hitting record high of ₹49,348 earlier this week. Silver prices however edged higher today on MCX. Silver futures on MCX rose 0.25% to ₹51,217 per kg. Weighing on gold prices are concerns about consumer demand with prices rising to record highs, say analysts.

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.

Gold exchange traded funds saw hefty net inflows of over Rs 3,500 crore in the first six months of this year as investors continued to hedge their exposure to riskier assets amid the Covid-19 crisis.

In comparison, investors had pulled out Rs 160 crore from this asset class in January-June 2019, according to the latest data available with the Association of Mutual Funds in India (Amfi).

Harsh Jain, co-founder and COO of Groww, said many investors are preferring to park their money in gold in light of the volatile markets.

Srivastava said gold functions as a strategic asset in an investor's portfolio, given its ability to act as an effective diversifier, and alleviate losses during tough market conditions and economic downturns.

It has a safe-haven appeal, which has been on full display in 2019 and so far in 2020, as the yellow metal is witnessing one of its best rallies after 2011.

Globally, gold prices traded 2.20 per cent higher at USD 1,800.80 per ounce in New York.