Gold price drops to Rs 49,050 per 10 gm; silver peaks to Rs 53,150 a kg

In New Delhi, the price of 22-carat gold rises to Rs 47,850 per 10 gram, and in Chennai to Rs 46,950

Gold prices on Tuesday dropped to Rs 49,050 from Rs 49,110 per 10 gram, while silver climbed to Rs 53,150 from Rs 52,910 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 47,850 per 10 gram, and in Chennai to Rs 46,950. In Mumbai, the rate was Rs 47,930, according to the Good Returns website. The price of 24-carat gold prices in Chennai was at Rs 51,240. 

On MCX, August gold futures climbed 0.12 per cent to Rs 49,027 per 10 gram. Silver September futures jumped to Rs 54,005 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 pandemic and lockdown have severely affected the jewellery industry and changed demand equations. 

In CY19, according to the World Gold Council data, India had imported 647 tonne of gold. In the March quarter of CY20, the import was 78.4 tonne; in the June quarter, it was merely 11 tonne. The import scene in July, too, is not encouraging and demand is expected to fall to a third this year.  

Gold prices fell by Rs 31 to Rs 49,916 per 10 gram in the national capital on Monday owing to a weak global trend, according to HDFC Securities.