Gold prices unchanged for 2nd day at Rs 49,330/10 gm, silver at 66,500/kg

In New Delhi, the 22-carat gold price stayed at Rs 48,090 per 10 gm, while in Chennai it stood at Rs 46,360

Gold price on Wednesday was stable at Rs 49,330 for a second straight day, while the silver price fell by Rs 200 to trend at Rs 66,500 per kg, according to the Good Returns website.

Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.

In New Delhi, the price of 22-carat gold stayed at Rs 48,090 per 10 gm, while in Chennai it stood at Rs 46,360. In Mumbai, the rate remained at Rs 48,330 according to the Good Returns website. The price of 24-carat gold in Chennai was Rs 50,610 per 10 gm.  

In the international market, gold prices edged lower on Tuesday on concerns over a fresh US coronavirus aid package, while a slightly weaker dollar and subdued treasury yields limited losses and investors kept a close eye on the Federal Reserve's policy meeting.

Spot gold was down 0.2 per cent to $1,851.26 per ounce at  01:53 p.m. EST (1853 GMT). US gold futures settled down 0.2 per cent at $1,850.90.

   
"There is no clarity on where fiscal spending is going, there is no full clarity of how the central bank is going to react ... these uncertainties are serving as a cap on gold," said Bart Melek, head of commodity strategies at TD Securities. 

 
However, the dollar slipped from a near one-week high, raising gold's appeal for other currency holders.       

"The US dollar came off a little bit and that's typically a supportive factor." 

US President Joe Biden's $1.9 trillion pandemic relief proposal faces hurdles as Republicans voiced concerns over the cost and lobbied for a smaller plan targeting vaccine distribution.   
                       
"If they do reach a deal it might be a watered down version to get it through Congress, so that's also weighing on (the gold) market," said Saxo Bank analyst Ole Hansen.