Gold price on Monday jumped to Rs 54,700 from Rs 53,520, while silver price was trending at Rs 70,200 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 gold price of 22-carat gold is at Rs 50,150 per 10 gm, while in Chennai it fell to Rs 48,560. In Mumbai, the rate was Rs 50,320 according to the Good Returns website. The price of 24-carat gold in Chennai was Rs 52,950 per 10 gm.
Gold gained Rs 335 to Rs 50,969 per 10 gram in the national capital on Tuesday amid rupee depreciation, according to HDFC Securities.
The precious metal had closed at Rs 50,634 per 10 gram in the previous trade. Silver also went up by Rs 382 to Rs 69,693 per kg, from Rs 69,311 per kg in the previous trade. The rupee depreciated by 13 paise to 73.15 against the US dollar in the opening trade on Tuesday.
In the international market, Gold hit a two-month high on Tuesday, buoyed by a weaker dollar and growing concerns about Covid-19 as investors awaited the U.S. Senate run-offs in Georgia that could impact prospects for more fiscal stimulus.
Spot gold was up 0.3 per cent at $1,947.18 an ounce, having earlier scaled its highest level since Nov. 9, at $1,952.36. US gold futures gained 0.2% to $1,950.50.
"With more risks associated with the virus, short-term, we're seeing people moving money into the safe havens," said Chris Gaffney, president of world markets at TIAA Bank, adding that the dollar's weakness has been one of the main supports for bullion in the first few days of 2021.
Britain went into a new national lockdown amid rising Covid-19 cases, while New York found its first case of a more contagious coronavirus variant.