Gold prices remain stable at Rs 47,340 per 10 gm, silver at Rs 69,200 a kg

In Mumbai, the rate was at to Rs 46,340, same as yesterday, according to the Good Returns website
Gold price on Monday remained unchanged at Rs 47,340, while silver price was trending at Rs 69,200 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 stayed at Rs 46,400 per 10 gm--the same as Friday, while in Chennai it rose by Rs 10 to Rs 44,690. In Mumbai, the rate was at  to Rs 46,340, same as yesterday, according to the Good Returns website. The price of 24-carat gold in Chennai also rose to Rs 48,750 per 10 gm.

The price of 22-carat gold in Bengaluru also stayed at Rs 44,250 per 10 gm.

In the international market, Gold slipped as the dollar rebounded on Friday, and platinum took a breather after expectations of a rebound in industrial demand drove a rally to a more than six-year peak and put it on course for its best week in two months.

Spot gold lost 0.5 per cent to $1,816.40 an ounce by 5:51 pm (IST) and US gold futures were down 0.6 per cent at $1,816.30.

“The inverse relationship between gold and the dollar has been strong recently and the rebound in the dollar has had a negative impact,” said David Madden, market analyst at CMC Markets UK.

The dollar edged up 0.2 per cent, reducing gold’s appeal to buyers holding other currencies.

“In the short term, there is little to suggest that the prospects for gold will brighten, as this would require inflation risks to increase noticeably,” Commerzbank analysts said in a note. 

Gold is often seen as a hedge against inflation.

Still, expectations for an economic stimulus package in the United States helped to keep gold prices on course for a first weekly rise in three.

“Our thesis for the next year or two is that equities and gold are going to do well because of inflationary expectations and monetary and fiscal stimulus remain supportive for both,” said Hitesh Jain, lead analyst at Mumbai-based YES Securities, adding that the metal could rise to $1,950 this year.

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