Gold prices jump to Rs 47, 540 per 10 gram; silver at Rs 47,870 per kg

Gold price jumped to Rs 47,540 from Rs 47,314 per 10 gram, while silver went up to Rs 47,870 from Rs 47,545 per kilogram on Wednesday, according to the Indian Bullion and Jewellers Association.

The prices of gold jewellery vary across India, which is 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 iis holding steady at Rs 46,000 per 10 gram, while in Chennai it is Rs 45,530. In Mumbai, the rate is Rs 46,100, according to Good Returns website. Prices of 24-carat gold prices in Chennai is Rs 49,670. 

On MCX, August gold futures rose 1.21% to Rs 47,593 per 10 gram. Silver July futures also rose nearly 2% to Rs 48,315 per kilogram. MCX has decided to accept gold and silver bars refined at domestic refineries for deliveries, subject to final regulatory approval.

In the international market, Gold edged up in seesaw trade on Tuesday as concerns over a fresh coronavirus outbreak in China countered pressure from a surge in Wall Street driven by a record rise in US retail sales and optimism over a Covid-19 drug. The sentiments for the yellow metal also rose as the US Federal Reserve announced details of a plan to start buying corporate bonds to revive the country's economy.

Spot gold rose 0.2% to $1,727.86 per ounce by 11:18 a.m. ET (1518 GMT). US gold futures gained 0.5% to $1,736.20 per ounce.

Raising concerns over the pandemic, Beijing's city government on Tuesday raised its Covid-19 emergency response level to II from III, according to state media.

"Gold is gaining after Beijing suddenly tightened the measures, with schools shut and people advised not to leave the city unless necessary," said Alex Turro, market strategist at RJO Futures.

Driving initial declines in safe-haven gold, Wall Street surged after a Commerce Department report showed overall retail receipts rose 17.7% last month, the biggest advance on record.

Equities also found support from data showing reduced Covid-19 death rates in a trial of a generic steroid drug.

"Every time the (gold) price falls, it seems that investors are seeing it as a buying opportunity," ActivTrades chief analyst Carlo Alberto De Casa said in a note.

Global coronavirus cases reached more than 8 million on Monday, as infections surged in Latin America and the United States.

The fundamentals for gold are strong, given the low interest rates environment and uncertainty over the pandemic, RJO Futures' Bob Haberkorn said.