Silver on the other hand was marginally lower by Rs 137 at Rs 47,330.

Gold on the MCX has been gaining ground largely in line with international prices. International prices of gold have so far rallied nine per cent this year, despite investor attention shifting to equities.

The international price of gold at $1323 an ounce means the precious metal is now trading at a three and half week high in dollar terms. This year the metal has risen more than nine percent so far in dollar terms. This easily beats equity returns this year.

In 2013, gold prices fell for the first time in 12 years, as investor continued to chase equities.

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