On Tuesday, gold prices in the domestic market rose to 51,280 for 10 grams of 24 carat gold, amid festive cheer, Treasury yields declining and the US dollar moving lower than its level. The price of gold went up to Rs 47,000 for 10 grams of 22 carat gold, up from Rs 4,650 on Monday. One gram of 24 carat gold cost today at Rs 5,128 compared to Rs 5,073 on Monday. The silver was trading at Rs 57,400 per kg, about 1,000 more than yesterday.
On Monday, gold rates at MCX rose 0.07 per cent, touching an intraday high of around Rs 50,130 per 10 grams at 1.38 pm. Silver prices were up 1.44 per cent.
After the dollar weakened, gold prices went up in the international market. The experts don't rule out the possibility of a volatile market due to Fed's aggressive monetary policy stance. Spot gold rose 0.3 per cent to $1,663. Per ounce, it's 99 per ounce. The yields of US treasury notes fell by 0.87 points on Monday, from 3.829 per cent to 3.642 per cent.
24 carat gold is selling at Rs 51,110 per 10 grams in Mumbai and Kolkata, while 22 carat gold is trading at 46,850, respectively. In Delhi, 24 carat and 22 carat gold are trading at Rs 51,280 and Rs 47,000 per 10 gm.
In Chennai, 24-carat and 22-carat gold are trading at Rs 51,330 and 47,050. It is important to note that gold prices vary from city to city and depend on taxes and duties levied by the state government.
Gold contracts for December delivery traded higher by Rs 205 or 0.41 per cent at Rs 50,399 per 10 gram, a business turnover of 17,446 lots, according to the Multi Commodity Exchange.
Although gold is strengthening amid a weaker US dollar, strategists feel that the yellow metal is stuck in a strong downtrend with no respite in the coming months. The trade is down due to the global factors. The risk of capitulation remains a concern for the yellow metal in October, with strong data showing a more aggressive Fed rate path ahead, experts and analysts said.
The experts said that a restrictive regime may last longer than historical precedents, with the Fed likely to keep rates elevated for some time because of the increase in inflation's persistence this cycle. Demand is muted in domestic markets. Domestic experts feel there can be slight upward movement due to the festive rush, but it will be more or less flat.