Gold prices jumped on Tuesday to Rs 52,000 from Rs 51,160 per 10 gram, while silver climbed to Rs 64,700 from Rs 61,210 per kilogram, according to Good Returns website.
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 50,800 per 10 gram, and in Chennai to Rs 49,780. In Mumbai, the rate was Rs 50,650, according to the Good Returns website. The price of 24-carat gold prices in Chennai was at Rs 54,300.
On MCX, August gold futures climbed 2.09 per cent to Rs 52,101 per 10 gram. Silver September futures jumped to Rs 65,528 per kilogram. 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.
So far, this financial year (from April 1 to date), silver has gained 63 per cent, while gold and the equities market (Nifty50 returns) have climbed 21 per cent and 30 per cent, respectively.
Silver, which has industrial usage, has been a rather late entrant to the party. At the start of the month, its returns for the financial year lagged that of equities, while were largely at a par with gold. However, so far this month, silver prices have zoomed more than 30 per cent amid weakness in the US dollar against major global currencies.
Experts say prices of equities, gold, and silver rallying at the same time indicates concerns of staginflation, where investors fear inflation will continue to rise despite pick up in growth or jobs.
The gold market cycle usually lasts 8-10 years and according to experts, the bull run in the bullion has just started. The previous bull cycle had started in 2001 and ended in 2011 during which the metal had turned seven times costlier. After peaking, it had slipped 46 per cent and consolidated for several years.
To read the full story, Subscribe Now at just Rs 249 a month