Gold price on Tuesday was stable at Rs 49,330, while the silver price was trending at Rs 66,700 per kg– the same as yesterday, according to the Good Returns website.
Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.
In New Delhi, the price of 22-carat gold stayed at Rs 48,090 per 10 gm, while in Chennai it fell to Rs 46,360. In Mumbai, the rate remained at Rs 48,330 according to the Good Returns website. The price of 24-carat gold in Chennai was Rs 50,610 per 10 gm.
In the international market, Gold prices pared gains on Monday as the dollar edged higher, but expectations of fresh US fiscal stimulus underpinned the bullion ahead of this week’s Federal Reserve’s meeting.
Spot gold was up 0.1 per cent at $1,854.81 by 2:22 p.m. EST (1922 GMT), after rising as much as 0.8 per cent. US gold futures settled 0.1 per cent lower to $1,855.20 perounce. The dollar was up 0.2 per cent, making bullion more expensive for holders of other currencies.
“We’re starting to get early indications that the dollar index has hit a near-term bottom. If that’s the case, a rising dollar would work against the precious market bulls,” said Kitco Metals senior analyst Jim Wyckoff.
“The prospect of inflation down the road given all the stimulus and central bank easing that has made the world financial system awash in cash, that’s supportive (for gold) on a longer term basis.”
US President Joe Biden’s administration countered concerns about the $1.9 trillion pandemic relief proposal being too expensive and underlined the need to act swiftly.