Gold price at Rs 47,900 per 10 gm, silver trending at Rs 68,950 a kg

In Mumbai, the rate decreased to Rs 46,900 according to the Good Returns website
Gold price on Friday fell to Rs 47,900 from Rs 48,010, while silver price was trending at Rs 68,950 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 slipped by Rs 200 to Rs 46,700 per 10 gm, while in Chennai it fell by Rs 160 to Rs 45,060. In Mumbai, the rate decreased to Rs 46,900 according to the Good Returns website. The price of 24-carat gold in Chennai also declined to Rs 49,140 per 10 gm.

In the international market, Gold edged lower on Thursday as the dollar's recovery from a two-week trough hit in the previous session and a softer US inflation data dampened bullion's appeal.

Spot gold fell 0.3 per cent to $1,837.13 per ounce by 0636 GMT, after hitting a more than one-week high on Wednesday.

US gold futures slipped 0.3 per cent to $1,837.40.

"The dollar has rebounded from Wednesday's low, that's putting some pressure on precious metals. Low liquidity due to the Chinese new year holiday is also weighing on the prices," said DailyFX strategist Margaret Yang.

Gold has also lost some support as US data showed there is not much of inflation down the road, Yang said.

The US Consumer Price Index for January came in lower than expected. Gold is considered a hedge against inflation.

US Federal Reserve Chair Jerome Powell in a speech on Wednesday emphasised on the need for fiscal policy and said it is not the right time to focus on federal debt issues.

Investors kept a close watch on the developments on the passage of a $1.9 trillion US relief bill.

"It's quite a mixed narrative right now," said Stephen Innes, chief global market strategist at financial services firm Axi.

"Too much stimulus in the market could force the Fed to tighten the monetary policy, that's negative for gold, but if the stimulus isn't big enough, gold is not going to benefit."  

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