Gold price jumps to Rs 55,350 per 10 gram, silver at Rs 73,500 a kg

Gold prices jumped on Friday to Rs 55,350 from Rs 54,700 per 10 gram, while silver climbed to Rs 73,500 from Rs 71,500 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 54,150 per 10 gram, and in Chennai to Rs 53,510. In Mumbai, the rate was Rs 53,800, according to the Good Returns website. The price of 24-carat gold price in Chennai was at Rs 58,320. 

On MCX, August gold futures jumped 1.36 per cent to Rs 55,845 per 10 gram. Silver September future was at Rs 76,052 per kilogram. MCX has decided to accept gold and silver bars refined at domestic refineries for deliveries, subject to final regulatory approval.

MCX said in a statement it has received Sebi's approval for the launch of Gold Mini options with Gold Mini (100 grams) bar as underlying.

Demand for gold in India rebounded in July, with imports jumping by a quarter from a year earlier, as lockdowns to combat the coronavirus in the second-largest consumer of the metal were slowly eased. Overseas purchases rose to 25.5 tonnes in July from 20.4 tonnes a year earlier and were almost double the amount shipped in the previous month, according to a Bloomberg report.

Meanwhile, the Reserve Bank of India on Thursday added additional shine to gold ornaments and jewellery by allowing banks to give loans up to 90 per cent of the value of such items pledged by borrowers. At present, loans sanctioned by banks against pledge of gold ornaments and jewellery is up to 75 per cent of the value of such items.

The additional loan against jewellery is expected to mitigate the economic impact of the Covid-19 pandemic on households, entrepreneurs and small businesses and help them tide over their temporary liquidity mismatches.