Gold price on Monday remained unchanged at Rs 46,130, while silver price was trending at Rs 69,000 per kg, according to the Good Returns website.
Gold jewellery prices vary across India, the second-largest consumer of the metal, due to differing excise duty, state taxes, and making changes in different states.
In New Delhi, the price of 22-carat gold rose by Rs 10 to Rs 45,410 per 10 gm, while in Chennai it inched up to Rs 43,770. In Mumbai, the rate stayed at Rs 45,130–the same as Friday, according to the Good Returns website. The price of 24-carat gold in Chennai was up by Rs 10 to Rs 47,750 per 10 gm.
Physical gold demand in India last week surged as local prices dropped to their lowest levels since June last year, with buying expected to pick up in other Asian centres after the Chinese Lunar New Year holiday week.
In India, dealers were charging a premium of up to $7 an ounce over official domestic prices, the highest in eight months. Last week they were charging a premium of up to $5 inclusive of 12.5 per cent import and 3 per cent sales levies.
“Sales are robust. People are buying coins, bars and jewellery because of price correction,” said Chanda Venkatesh, managing director of CapsGold, a bullion merchant based in the southern city of Hyderabad.
On Friday, local gold futures fell to Rs 45,861 per 10 grams, the lowest level since June 2020.
Supplies are limited but demand is robust from jewellers, who are keen to build inventory for the festival and wedding season, said a Mumbai-based dealer with a bullion importing bank.
In the international market, Gold prices had edged higher on Friday, recovering from a more than seven-month low hit earlier as the US dollar eased, but rising Treasury yields kept bullion on course for its biggest weekly drop since early January.
Spot gold was up 0.3 per cent at $1,780.86 per ounce by 02:17 pm EST (1917 GMT), after falling to its lowest since July 2 at $1,759.29 earlier.
The safe-haven metal was down about 2.4 per cent in the week, its biggest weekly drop since the week of January 8.
US gold futures settled up 0.1 per cent at $1,777.40.
“The drop in the US dollar has likely driven gold higher,” said Bart Melek, head of commodity strategies at TD Securities, adding the move could also be technical in nature.