Gold rates rose slightly in early trading on Monday, with 10 grams of the yellow metal (24 carats) trading at 50,680 rupees, up 10 rupees, according to the GoodReturns website. It rose and traded at Rs 60,500/kg after an increase of Rs 5,200.
Ten grams of 22 carat gold is trading at Rs 46,460 after a fluctuation of Rs 10.
In Mumbai and Kolkata, 10 grams of 24 carat gold is priced at Rs 50,680 and 22 carat gold at Rs 46,460 each. In Delhi, 24 karat and 22 karat gold is traded at Rs 50,830 and Rs 46,610 per 10 grams respectively.
In Chennai, 24 karat and 22 karat gold are priced at Rs 51,170 and Rs 46,910 respectively.
The looming risk of an aggressive rate hike by the US Federal Reserve limited the rally in zero-yielding bullion, but gold prices were stable on Tuesday as the dollar weakened. The gold spot held its position at $1,651.75 per ounce as of 0118 GMT. US gold futures fell 0.3% to $1,658.30.
A fourth consecutive Fed rate hike of 75 basis points is expected next month after last week’s data showed inflation rose significantly in September.
Gold is very sensitive to rising US interest rates, which increases the opportunity cost of holding non-yielding assets.
In Mumbai, Bangalore and Hyderabad, on the other hand, 1kg of silver sells for 60,500 rupees. In Chennai, Delhi and Kolkata, 1kg of silver sells for Rs 55,300.
(including information from Reuters)