Gold price today: Rs 52,465 per 10 grams, silver price at Rs 62,730 per kg

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Gold prices on Wednesday fell by Rs 69 to trade at Rs 52,465 per 10 grams while silver prices fell by more than Rs 2,500 to stand at Rs 62,730 per kg, according to the Indian Bullion and Jewelers Association.

Gold and silver both saw declines after seven days of gain, according to HDFC Securities.

Gold jewelry prices vary across India, the second largest consumer of the metal, due to excise duties, state taxes and manufacturing fees.

In New Delhi, the price of 22 karat gold rose to Rs 51,250 for 10 grams. 24 karat gold in the nation’s capital was selling at Rs 52,450. In Chennai, 22 karat rose steadily to Rs 50,370 while the price of 24 karat gold in Chennai was at Rs 54,940. In Mumbai , the rate was Rs 50,760 for 22-carat gold, according to the Good Returns website.

On MCX, August gold futures climbed more than 1% to Rs 52,649 per 10 grams while September silver futures slid 0.41% to Rs 65,260 per kg.

MCX has decided to accept gold and silver bullion refined at domestic refineries for delivery, subject to final regulatory approval.

MCX has received approval from Sebi to launch Gold Mini options with a Gold Mini bar (100 grams) as the underlying, MCX said in a statement.

In the international market, gold gained on Tuesday ahead of a U.S. Federal Reserve policy meeting expected to provide more monetary stimulus to support the coronavirus-hit economy, although bullion pulled back from an all-time high hit earlier.

As of 11:10 a.m. EDT (1510 GMT), spot gold was up 0.3% at $1,947.51 an ounce, while U.S. gold futures were up 0, 93% to $1,949.00 an ounce.

ALSO READ: Gold Prices Fall After 7 Days Of Straight Gains; money falls 9%

Gold hit a record high of $1,980.57 an ounce earlier in the session, but prices have fallen as much as 3.7% since then as investors took profits and the dollar rebounded.

“When you get strong momentum, you get a lot of speculators looking to make a quick profit,” said Michael Matousek, chief trader at US Global Investors.

“Nothing has fundamentally changed, the deficits and falling interest rates that fuel inflation will still be there, so there’s no reason not to really own gold.”

Investors are now eyeing the Fed’s two-day meeting which begins on Tuesday, where it is expected to reiterate its dovish policy.

The Fed announced the extension of several of its loan facilities until the end of the year.

Rising Covid-19 infections, simmering tensions between China and the United States, massive stimulus measures and a low interest rate environment to help pandemic-hit economies have helped gold to up 28% so far this year.

Gold prices are expected to reach $2,300 per troy ounce over the next 12 months, Goldman Sachs said, as concerns over the longevity of the U.S. dollar as a reserve currency began to emerge.

“We have long maintained that gold is the currency of last resort, especially in an environment like the current one where governments are depreciating their fiat currencies and pushing real interest rates to historic lows,” Goldman said.

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