Gold prices jumped to Rs 48,190 from Rs 47,960 per 10 gram, while silver went up to Rs 48,800 from Rs 48,670 per kilogram on Tuesday, according to the Good Returns.

The prices of gold jewellery vary across India, which is 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 is holding steady at Rs 47,000 per 10 gram, while in Chennai it is Rs 46,290. In Mumbai, the rate is Rs 46,600, according to Good Returns website. Prices of 24-carat gold prices in Chennai is Rs 50,580.

On MCX, August gold futures rose 0.01 per cent to Rs 47,944 per 10 gram. Silver July futures fell nearly 0.28 per cent to Rs 48, per kilogram. MCX has decided to accept gold and silver bars refined at domestic refineries for deliveries, subject to final regulatory approval.

On the US-China front, sentiments improved after China said it planned to accelerate purchases of American farm goods to comply with the phase one trade deal.

Gold price jumped by 1 per cent to set a record on Monday as intensified geopolitical tensions, spiraling Covid-19 cases, and concerns of struggling economy increased its safe-haven appeal.

“Gold prices continued upside on Monday on heightened risk sentiments with record rise in Covid-19 cases. The US Federal Reserve’s signal that the economy will take longer-than-expected to recover also supported gold prices to trade higher,” said Tapan Patel, senior analyst (commodities), HDFC Securities.

The ongoing clash between India and China, coupled with the US-China trade war and the scheduled election in the US, has raised gold’s safe haven appeal. Gold in the London spot market traded strong on Monday at $1,747 per ounce (oz) after rallying above $1,750 per oz in the morning.