Gold price today at Rs 48,960 per 10 gm, silver trending at Rs 65,000 a kg

Gold price on Tuesday inched up to Rs 48,960 from Rs 48,900, while the silver price was trending at Rs 65,000 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 charges.

In New Delhi, the gold price of 22-carat gold is at Rs 47,650 per 10 gm, while in Chennai it rose to Rs 46,130. In Mumbai, the rate was Rs 47,960 according to the Good Returns website. The price of 24-carat gold in Chennai was Rs 50,320 per 10 gm.

Silver prices remained unchanged at Rs 65,000 per kg in previous trade.

In the international market, Gold prices steadied after dropping to their lowest in 1-1/2 months on Monday, as prospects of a massive US coronavirus relief aid outweighed a stronger dollar and lifted bullion's appeal as an inflation hedge.

Spot gold was steady at $1,826.79 per ounce by 0349 GMT, after having dropped to their lowest since Dec. 2, 2020 at $1,809.90 earlier in the session.

US gold futures eased 0.2% to $1,826.60.

"The gold market remains relatively supported at these levels, as the current run of the US dollar has more to do with safe haven, rather than a discernible pivot to a stronger dollar," said Stephen Innes, chief global market strategist at Axi.

US President-elect Joe Biden last week unveiled a $1.9 trillion stimulus package proposal to jump-start the economy and said he wants 100 million Covid-19 vaccine shots during his first 100 days in office.

Gold is considered a hedge against inflation and currency debasement, likely from large stimulus.

"The US dollar and yields may be the new safe havens rather than precious metals and would weigh on prices in the short term," Phillip Futures said in a note.

"Our market view remain bullish for the long term as the US dollar is expected to remain structurally weak in the long term."