The US dollar went to a new high on Wednesday as there was talk of more interest rate hikes by the US Fed. In India, gold prices were at a price of 49,970 for 10 grams of 24 carat gold. The price for 10 grams of 22 carat gold was Rs 45,800. The silver prices were at Rs 55,000 per kg.
On Wednesday, gold futures were trading down by 0.20 per cent at Rs 49,221 per 10 grams. Silver futures were trading lower by 0.77 per cent at Rs 54,950 per kg.
As the US central bank said it would take a tough stand against inflation by increasing base interest rates, gold prices continued to struggle in the international market. Spot gold was down 0.3 per cent at $1,624. It was 81 per ounce as of 0132 GMT. US gold futures fell 0.2 per cent to $1,632. The dollar index was up 0.3 per cent, edging closer to a 20 year high touched on Monday. Benchmark US 10 year Treasury yields rose to a 12 year 1 2 year high overnight.
In Mumbai and Kolkata, 24-carat gold is selling at Rs 49,970 per 10 grams, while 22-carat gold is trading at 45,800. In Delhi, 24 carat and 22 carat gold are trading at Rs 50,130 and 45,950 per 10 gm.
In Chennai, 24 carat and 22 carat gold are trading at Rs 50,450 and 46,250. It is important to note that gold prices vary from city to city and depend on taxes and duties levied by the state government.
For ages, gold has been the most popular investment option for those looking for higher returns. An investor can make money from gold depending on when he buys it and when he sells it. The present situation seems to be different. The yellow metal hasn't given the desired returns this year despite high market volatility, high interest rates and worsening geopolitical tensions.
The consumption of India, which is the second largest consumer, accounting for 20 per cent of global demand, will see a marginal increase in consumption despite the festive season, according to the World Gold Council. This year India s gold demand could be up to 800 tonnes this year, a slight increase from 797.3 tonnes in 2021, according to the council's estimates.
The consumption rose by 42 per cent in the first half of this year, but it is expected to be muted in the second half due to higher consumer inflation.