Gold price rises to Rs 47,230 per 10 gm, silver trending at Rs 70,200 a kg

Gold price on Wednesday inched up to Rs 47,230 from Rs 47,000, while silver price rose by Rs 400 to trend at Rs 70,200 per kg, according to the Good Returns website.

Gold jewellery prices vary across India, the second-largest consumer of the metal, due to differing excise duty, state taxes, and making changes in different states.

In New Delhi, the price of 22-carat gold remained unchanged at Rs 46,400 per 10 gm, while in Chennai it increased to Rs 44,640. In Mumbai, the rate jumped to Rs 46,230, according to the Good Returns website. The price of 24-carat gold in Chennai was Rs 48,700 per 10 gm.  

In the international market, Gold prices fell as much as 1.7 per cent on Tuesday to their lowest in more than a week on stronger US Treasury yields while platinum eased in choppy trading after a rally that took it to a 6-1/2 year high.

Spot gold fell 1.1 per cent to $1,798.46 an ounce by 11:52 a.m. EST (1652 GMT), having touched its lowest since Feb. 4.

US gold futures fell 1.1 per cent to $1,804.00.

"Gold is shifting away from being an inflation hedge asset, as has been the case for most of 2020, into a safe-haven asset once again," said TD Securities commodity strategist Daniel Ghali, pointing to rising Treasury yields.

Bullion is considered a hedge against inflation expected from massive economic stimulus that has also pushed US 10-year Treasury yields higher, increasing the opportunity cost of non-yielding gold.

Also weighing on gold, US stock indexes hit all-time highs on optimism surrounding a $1.9 trillion US coronavirus relief package.