Gold price on Tuesday inched up by Rs 190 to Rs 47,350 from Rs 47,160, while silver price soared to Rs 69,200 per kg, according to the Good Returns website. Gold jewellery prices vary across India, the second-largest consumer of the metal, due to differing excise duty, state taxes, and making changes in different states. In New Delhi, the price of 22-carat gold was at Rs 46,200 per 10 gm, while in Chennai it declined to Rs 44,580. In Mumbai, the rate rose to Rs 46,350, according to the Good Returns website. The price of 24-carat gold in Chennai was Rs 48,630 per 10 gm. In the international market, Gold jumped more than 1 per cent on Monday as expectations of a large US economic stimulus package bolstered bullion's appeal as an inflation hedge.
Spot gold rose 1.4 per cent to $1,836.95 per ounce by 11:54 a.m.
EST (1654 GMT). US gold futures rose 1.3 per cent to $1,836.10.
US President Joe Biden and his Democratic allies in Congress cleared the path for a $1.9 trillion Covid-19 relief package as lawmakers approved a budget outline that will allow them to muscle the plan through without Republican support.
US Treasury Secretary Janet Yellen said on Sunday the country would get back to full employment next year if Congress approves the stimulus package. Gold also seemed to take some cues from another jump in Bitcoin, after Tesla Inc said it had invested around $1.5 billion in the cryptocurrency.
In its 2020 annual report, Tesla also said it may invest in "certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future."
But "Bitcoin and old have been basically uncorrelated. The current surge in Bitcoin may be adding to the sentiment, but is not a primary driver," BMO's Wong said.
An interest in asset classes that are a store of value such as gold and silver, after Tesla's Bitcoin purchase, is helping prices, said David Meger, director of metals trading at High Ridge Futures.