Gold continues upward trend at Rs 51,160, Silver crosses Rs 61,000 mark

Gold prices jumped on Monday to Rs 51,160 from Rs 51,150 per 10 gram, while silver climbed to Rs 61,210 from Rs 61,200 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 49,960 per 10 gram, and in Chennai to Rs 49,910. In Mumbai, the rate was Rs 48,700, according to the Good Returns website. The price of 24-carat gold prices in Chennai was at Rs 53,480. 

On MCX, August gold futures climbed 0.66 per cent to Rs 51,035 per 10 gram. Silver September futures jumped to Rs 61,223 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.

Gold import in the calendar year 2020 (CY20) is expected to fall 50 per cent to nearly a 17-year low because of lacklustre demand since the Covid-19 outbreak in March and record-high prices. Experts estimate only 350 tonne of gold import this year, matching the 2003 figure.

The jewellery industry is expecting the consumer demand for gold to falter further amid surging prices of the precious metal and economic slowdown.

Gold prices have been ruling at unprecedented highs in India and global bullion markets as investors are preferring safe haven assets amid economic uncertainty triggered by the COVID-19 pandemic.

"The demand is already very sluggish at the moment with only 20-25 per cent business taking place following the economic slowdown, insecurity over jobs, social distancing and lockdowns due to COVID-19. The high price of gold will add on to the already sluggish consumer demand," All India Gem and Jewellery Domestic Council Chairman Anantha Padmanabhan told PTI.

The global benchmark spot gold prices held near a nine-year peak. Basically, consumers are waiting for the volatility in gold to settle down before taking any buying decisions, he said adding that the prices are expected to be bullish till November at least. "There might be slight fluctuations in prices but no major changes."