Gold prices jumped on Tuesday to Rs 52,700 from Rs 52,450 per 10 gram, while silver climbed to Rs 66,050 from Rs 66,000 per kilogram, according to Good Returns website.
Gold jewellery prices vary across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making charges.
In New Delhi, the price of 22-carat gold rose to Rs 51,500 per 10 gram, and in Chennai to Rs 50,740. In Mumbai, the rate was Rs 51,400, according to the Good Returns website. The price of 24-carat gold prices in Chennai was at Rs 55,310.
On MCX, August gold futures climbed 1.13 per cent to Rs 53,187 per 10 gram. Silver September futures jumped to Rs 65,354 per kilogram. MCX has decided to accept gold and silver bars refined at domestic refineries for deliveries, subject to final regulatory approval.
Analysts are now expecting high volatility in gold, saying the near-term risk of profit-booking is high, even as fundamentals remain strong. Gold, on Tuesday, too, had witnessed massive swings in the international market — it first surged as high as $1,974 an ounce, then declined as low as $1,900 before closing at $1,944.
Metal Focus report stated: “While the price outlook remains constructive for gold, we caution that positioning feels stretched. This is evidenced by a significant rise in trading volumes across key commodity exchanges in recent days. The wild volatility witnessed on Wednesday also supports our view. Should the dollar slide show a temporary pause or even reverses, further profit-taking (in precious metals) appears likely.”
In the international market, gold was trading flat at USD 1,958.30 per ounce, while silver also depicted muted trend and was quoting at USD 24.27 per ounce.