Gold price on Thursday jumped to Rs 49,100 from Rs 49,000, while the silver price was trending at Rs 66,500 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 price of 22-carat gold is at Rs 47,910 per 10 gm, while in Chennai it rose to Rs 46,510. In Mumbai, the rate was Rs 48,100 according to the Good Returns website. The price of 24-carat gold in Chennai was Rs 50,730 per 10 gm.
In the international market, gold prices rose more than 1 per cent on Wednesday as US Treasury secretary nominee Janet Yellen bolstered bets for another stimulus package under President Joe Biden.
Spot gold rose 1.5% to $1,867.06 per ounce by 11:58 a.m. EST (1658 GMT), having touched an over one-week high earlier. US gold futures rose 1.5% to $1,867.20.
“You have a big day in the United States … Traders are looking forward to Biden’s speech coming up, (while) the comments from Yellen are keeping the metals higher,” said Bob Haberkorn, senior market strategist at RJO Future.
Yellen on Tuesday said pandemic relief would take priority over tax increases.
Biden was sworn into office on Wednesday, with investors focused on his $1.9 trillion stimulus package proposal and the pace of Covid-19 vaccine distribution.
On the technical front, “it feels like gold wants to punch through and have a look at $1,900 in the coming days with the bullish flush of the changing of the guard”, said Tai Wong, head of base and precious metals derivatives trading at BMO.
Gold can still reach $2,000, probably by the middle of the second quarter when a good amount of people get inoculated and there’s so much cash in the system with demand almost coming back to normal, said Howie Lee, an economist at OCBC Bank.
“People will start looking at inflation very closely then,” Lee added.