In New Delhi, the price of 22-carat gold rose to Rs 47,900 per 10 gram. Gold in 24 carat in the national capital was retailing at Rs 49,100. In Chennai 22-carat climbed marginally to Rs 47,090 while the price of 24-carat gold price
in Chennai was at Rs 51,370. In Mumbai, the rate was Rs 48,100 for 22 carat gold, according to the Good Returns website.
On MCX, gold prices rose over 1% to Rs 49,534 per 10 gram. Gold touched record highs but silver rallied to multi-year highs surpassing gold. Silver prices climbed over 6% today on MCX to trade at Rs 57,387 per kg.
“Increasing Covid-19 infection, supply concerns, and hopes of further stimulus have supported silver’s safe-haven demand and pushed its international price to a nearly four-year high of $21 an ounce. Support from Comex silver, too, help the price surge. Still, silver is likely to continue its bullish run despite overbought readings,” said Ajay Kedia, Kedia Advisory, Mumbai.
In international market, gold rose more than 1% to a nine-year high on Tuesday, propelled by a softer dollar and expectations of more stimulus measures to resuscitate pandemic-hit economies, while silver sprinted past $20 for the first time since September 2016.
Spot gold gained 1.1% to $1,834.80 an ounce by 1217 GMT, having touched $1,841.01 for its highest since September 2011. U.S. gold futures rose 0.8% to $1,831.60.
"Gold is deriving strength from a broadly weaker dollar despite the improving market mood," said FXTM analyst Lukman Otunuga.
"The fundamental themes weighing on global sentiment remain intact, with rising coronavirus
cases in the largest economy in the world fostering a sense of unease."
The dollar eased 0.1% against major currencies after touching a more than four-month low.
Gold's advance defied a gain in global equities on the European Union's 750 billion euro ($857 billion) stimulus plan and hopes for coronavirus
Gold is finding support from discussions about new fiscal stimulus, said UBS analyst Giovanni Staunovo.