Gold trading, on Tuesday, was close to a three-month high. The reason – a recent comment by a Federal Reserve official that has given hope to the expectations that the US central bank would prefer a less aggressive approach to the hiked rates.
Gold futures today traded at Rs 52,864 as of 11:43 AM, up by 0.28 percent, on Multi Commodity Exchange (MCX) India. Silver futures traded at Rs 62,682 on Tuesday.
In the retail market, gold traded at Rs 52,960, recording a rise of Rs 320 from the last recorded price levels for 10 grams of the 24-carat variety. The 22-carat variety of gold also saw a rise of Rs 290, retailing at Rs 48,550 for ten grams. A kg of silver retailed at Rs 62,700 up by Rs 1000.
The highest gold prices were recorded in Chennai. At present, the 24-carat and 22-carat varieties of yellow metal are each priced at Rs 53,890 and Rs 49,400, respectively in Chennai. In the national capital of Delhi, 22-carat gold traded at Rs 48,700 while 24-carat gold was sold at Rs 53,110 per 10 grams. In Bengaluru, gold prices stood at Rs 53,010 for 24-carat variety and Rs 48,600 for 22 carats. The price of gold was the same for Kolkata, Hyderabad, and Mumbai. Ten grams of 22-carat gold were available for Rs 48,550, while the same quantity of 24-carat gold retailed at 52,960.
Gold is seen as a hedge against inflation, which rising rates aim to tackle, thereby diminishing the metal’s appeal. Higher interest rates also make other assets more attractive compared with non-interest-bearing bullion.
Gold prices continued their rally, despite hawkish statements from Federal Reserve Governor, said ICICIDirect Research. “However, gains in the US dollar and treasury yields weighed on gold prices,” it said.
“Gold prices are expected to trade with a positive bias for the day amid a rise in risk aversion in global markets and ongoing concerns,” it added.
According to Reuters, in India last week, a rise in domestic prices turned off the majority of buyers of physical gold, prompting dealers to give discounts for the first time in about a month.
In India, there is a 15% import duty and a 3% GST on gold pricing. India’s gold prices increased to over 55,000 in March of this year. Due to changes in tax rates and other levies imposed by the state governments, there is a state-to-state variance in the price of gold in India.
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