Gold price on Wednesday inched up by Rs 540 to Rs 47,890 from Rs 47,350, while silver price soared to Rs 70,200 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 increased by Rs 600 to Rs 46,800 per 10 gm, while in Chennai it rose to Rs 45,370. In Mumbai, the rate rose to Rs 46,890, according to the Good Returns website.
The price of 24-carat gold in Chennai was Rs 48,450 per 10 gm-- Rs 820 more than yesterday.In the international market, Gold jumped 1 per cent to a one-week high on Tuesday, as a sliding dollar and hopes of more US fiscal stimulus bolstered its appeal among investors seeking an inflation hedge.
Spot gold was up 0.7 per cent to $1,842.47 per ounce at 10:41 a.m. EST (1541 GMT), after hitting its highest since February 2 at $1,848.40 earlier in the session. US gold futures gained 0.5 per cent to $1,843.40.
"The reflation trade is really starting to settle in," and gold is benefiting from the dollar weakening again, and stimulus being the big focus, said Edward Moya, senior market analyst at OANDA.
Gold is "going to attract a significant amount of flows because of just the uncertainty with the global economic recovery and also, the US Federal Reserve is going to be very accommodative for quite some time."
US lawmakers were armed with a budget outline to push US President Joe Biden's $1.9 trillion Covid-19 relief package through Congress without Republican support, with the legislation likely to pass before March 15.
Gold is considered a hedge against inflation and currency debasement likely to result from widespread stimulus measures.