Gold prices today: Rs 48,120 per 10 gm; silver prices edge up to Rs 48,440

Gold prices in India edged up on Wednesday to Rs 48,120 per kg from Rs 48,075, while silver went up from Rs 48,253 to Rs 48,440, according to Indian Bullion and Jewellers Association.

The prices of gold jewellery 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 is about Rs 46,800 per 10 gram, while price of 24-carat is retailing at Rs 48,000 today. In Chennai it is Rs 46,100 for 22-carat while price of 24-carat is at 50,390. In Mumbai,22-carat is selling for Rs 46,650 and the price for 24-carat has inched up to Rs 47,650.

On MCX, August gold futures rose 0.68% per cent to Rs 48,269 per 10 gram while July silver futures were trading at Rs 48,832 per kg with a gain of 0.68% as well. MCX, which runs the country’s largest commodity derivatives segment (CDS), on Tuesday received SEBI approval to offer trading on gold mini (100 gm) and silver 5 kilo options.The gold mini option will be launched from August expiry onwards with expiry matching with gold mini futures. Normal expiry date is 5th of every month for mini futures. Three concurrent month contracts will be available, tick size will be 50 paise and price intervals between strikes at Rs 100. The maximum client position limit will be 10 tonnes and for broker, 100 tonnes.

In international market, gold prices surged to their highest since October 2012 on Tuesday, driven by a weakness in the U.S. dollar and widespread monetary stimulus packages by central banks as a jump in coronavirus cases dents the economic outlook.

Spot gold climbed 0.7% to $1,767 per ounce by 12:22 p.m. EDT (1622 GMT), having hit $1,768.96, its highest since October 2012. U.S. gold futures were up 0.9% to $1,782.30 per ounce.

"The tsunami of stimulus coming in from everywhere is not only inflationary but also painting a weaker picture for the economy and making gold look attractive," said Edward Meir, analyst at ED&F Man Capital Markets.

Gold has gained nearly 16% this year supported by global stimulus measures since the non-yielding metal is considered a hedge against inflation and currency debasement.

The dollar was down 0.5% at 96.55 against a basket of currencies, making gold cheaper for non-U.S. currency holders.

More than 9.14 million people have been reported to be infected by the coronavirus globally and 473,031 have died, a Reuters tally showed on Tuesday.

Gold's gains came despite a rise in equities driven by encouraging economic data and after U.S. President Donald Trump tweeted the U.S.-China trade pact was "fully intact".

"Gold's biggest enemy right now is if other markets grab attention and capital," said Tai Wong, head of base and precious metals derivatives trading at BMO.

"Barring a poor close under $1,750 in the coming days the October 2012 high of about $1,800 should only be a matter of time, a week, perhaps less."

Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.58% to 1,166.04 tonnes on Monday, a level last seen in April 2013.