The gold price on Tuesday jumped to Rs 52,000 from Rs 51,160 per 10 gram, while silver climbed to Rs 64,700 from Rs 61,210 per kilogram, according to Good Returns website.
Gold jewellery prices vary across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making charges.
In New Delhi, the price of 22-carat gold rose to Rs 50,800 per 10 gram, and in Chennai to Rs 49,780. In Mumbai, the rate was Rs 50,650, according to the Good Returns website.
The price of 24-carat gold prices in Chennai was at Rs 54,300.
On MCX, August gold futures climbed 2.09 per cent to Rs 52,101 per 10 gram. Silver September futures jumped to Rs 65,528 per kilogram. MCX has decided to accept gold and silver bars refined at domestic refineries for deliveries, subject to final regulatory approval.
In the international market, gold spot prices hit a high of $1,942.97 per ounce amid US-China tensions, a weaker dollar, and expectations of more stimulus pushing the investor towards safe haven assets aided by lower interest rates and falling bond yields.
Gold price in India depends on a host of factors such as the global price, currency movement and also local tariffs. Gold returns this year have been over 25 per cent and combined returns in the last two years have been over 45 per cent. Analysts have predicted the returns to be around 30 per cent over the next 18-24 months with prices crossing Rs 64,000 per 10 grams. Gold traders globally will be watching the stance of US Fed policy makers later this week.