Mumbai/Chennai/New-Delhi: Gold rates across the country witnessed a surge. The rise was in sync with the Rupee's moderate fall since the last week and the spot price of Gold which was seen inching closer to the $1,900 per ounce threshold level.
Retail price hovered above the Rs 51,000 mark in Maximum City Mumbai even as the MCX futures for December posted a 0.19 percent marginal gain to quote Rs 51,165 per ten grams.
In cities like Chennai, New Delhi and Kerala the rates were moderately higher than the evening closing rates for Monday.
Jewellers attributed the US election eve and increment in association rates as factors for increase in Gold.
At the start of the session on Tuesday, US spot markets behaved with a bit of caution after President Trump was reported as trailing behind democrat Biden in national opinion polls.
It is speculated that in the likelihood of Trump winning gold rates could see a temporary hold until a consensus on fiscal package is met with. A Biden win may usher in a larger fiscal stimulus package which could benefit Gold in rallying. However, on a contested result, the dollar is likely to be benefitted resulting in a slip for Gold.
The market-trend this week appears skewed in favour of Gold. In China, two banks have warned of restricting trading in precious metals and forex thanks to volatility owing to the US elections. The Federal Open Market Committee is expected to resume a two day meeting on Wednesday to decide on crucial interest rates.
Silver rates too saw a jump in Indian markets. On the MCX, Silver futures for December were up by 0.75 percent or Rs 465 in the session to quote 62,472 per kilo.
Rates mentioned as of the time of publishing this story. For retail rates across Indian cities, follow Sify Gold Rates