Gold prices slump to Rs 48,900 per 10 gm, Silver rallying at Rs 51,950 a kg

Gold prices on Saturday fell to Rs 48,900 from Rs 49,100 per 10 gram, while silver climbed to Rs 51,950 from Rs 51,900 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 47,700 per 10 gram, and in Chennai to Rs 46,920. In Mumbai, the rate was Rs 48,000, according to the Good Returns website. The price of 24-carat gold prices in Chennai was at Rs 51,200. 

On MCX, August gold futures fell 0.03 per cent to Rs 48,863 per 10 gram. Silver September futures jumped to Rs 51,362 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 prices on Friday rose by Rs 47 to Rs 48,925 per 10 gram in futures trade as speculators created fresh positions on firm spot demand. On the Multi Commodity Exchange, gold contracts for August delivery gained Rs 47, or 0.1 per cent, to Rs 48,925 per 10 gram in a business turnover of 10,087 lots.

Fresh positions built up by participants mainly led to the rise in gold prices, analysts said. Globally, gold prices traded 0.27 per cent higher at USD 1,808.60 per ounce in New York.

Goldman Sachs expects gold to benefit if China, the world's top retail buyer, recovers more strongly from a second wave of Covid-19 cases than the United States, and reinforced its $2,000 an ounce target for bullion prices. The Wall Street bank recommended maintaining long positions in copper, silver, steel and gold, which are "both less exposed to areas with new outbreaks - Asia and Europe versus the Americas - and less exposed in the event of an outbreak."