Domestic gold prices dip as dollar strengthens

Domestic gold prices showed a slight dip in rates after the yellow metal touched its 2 -- 1 2 year low on Monday in international markets due to a stronger dollar and the possibility of further interest rate hikes by the US Federal ReserveFederal Reserve. India's gold prices were Rs 50,200 for 10 grams of 24 carat gold. The price for 10 grams of 22 carat gold was Rs 46,000. The silver prices were at Rs 56,300 per kg.

The gold futures dipped by 0.8 per cent and were recorded at Rs 49,362 on Monday. Silver futures fell sharply to Rs 55,714 per kg, down about 1 per cent.

In the international market gold prices have taken a hit, due to a firmer US dollar and aggressive stance on interest rates to tame inflation. Spot gold was up 0.6% at $1,631. As of 0103 GMT, the 89 per ounce was at 89 per ounce. The price of the currency hit its lowest level since April 2020, at $1,620. On Monday, the deadline was 20. The US gold futures rose 0.3 per cent to $1,638. The dollar index fell 0.2 per cent after hitting a two-decade peak in the previous session.

Spot silver dropped by 1.6 per cent to $18.54 per ounce, having fallen to its lowest in more than two weeks.

In Mumbai and Kolkata, 24 carat gold is selling for Rs 50,200 per 10 gram, while 22 carat gold is trading at Rs 46,000. In Delhi, 24 carat and 22 carat gold are trading at Rs 50,350 and 46,150 per 10 gm.

In Chennai, 24 carat and 22 carat gold are trading at Rs 50,740 and Rs 46,510. It is important to note that gold prices vary from city to city and depend on taxes and duties levied by the state government.

The yellow metal has seen a lot of turmoil in the last few months due to geopolitical tensions that have gripped the world.

On Monday, the OECD said global economic growth is less than predicted a few months ago, due to Russia's invasion of Ukraine, because energy and inflation crises could lead to recessions in major economies. Fed officials on Monday sloughed off rising volatility in global markets, from slumping US stocks to currency turbulence abroad, and said their priority was controlling domestic inflation.