Gold, silver prices today: Gold prices dip to Rs 50,450, silver prices unchanged at Rs 56,150 a day before Dhanteras

Gold prices for both 22 and 24-carat weights have dipped marginally to Rs 46,250 and Rs 50,450, respectively in the domestic markets ahead of Dhanteras. On Friday, one gram of 22-carat gold is available at Rs 4,625. Meanwhile, an equal quantity of 24-carat gold is available at Rs 5,045. Silver prices touched Rs 56,150 per kg.  

Gold has support at Rs 49,910-49,740, while resistance is at Rs50,340, 50,580. Silver has support at Rs55,880-55,310, while resistance is at Rs 56,980–57,510.

In the international market, gold prices suffered a blow yet again and are staring a second weekly decline as US Treasury yields were at a multi-year high after strong labour market data was out. Along with this, Federal Reserve officials too assured that it would take a tough route to hike rates to dampen inflation.

Also read: Gold, silver price today: Gold, silver rates remain unchanged ahead of Dhanteras, Diwali boom  

The spot gold was flat at $1,627.20 per ounce, as of 0118 GMT, and lost 0.8 per cent so far for the week. US gold futures were down 0.4 per cent at $1,630.10. 

In contrast on Thursday, COMEX Gold traded 0.5 per cent higher near $1642/oz, while silver traded 1.5 per cent higher at $18.6/oz on a softer dollar and safe haven demand amid global slowdown concerns, said Ravindra Rao, VP- Head Commodity Research at Kotak Securities. 

Domestic prices 

The gold rates vary from state to state as the state governments levy additional charges and taxes as per their standards. Besides, buyers have to pay additional charges to the jewellers as making charges plus GST.  

On Friday, the rate for 24-carat gold in Mumbai and Kolkata is Rs 50,450, while the price for 24-carat gold Rs 46,250. In Delhi, the prices for 24-carat and 22-carat are at Rs 50,600 and Rs 46,350, respectively.  In Chennai, where gold is sold at the highest rates, 24-carat and 22-carat gold are trading at Rs 50,900 and Rs 46,650, respectively. 

Cities	22-Carat Gold Rates	24-Carat Gold Rates
Chennai	Rs 46,650	Rs 50,900
Mumbai	Rs 46,250	Rs 50,450
Delhi	Rs 46,350	Rs 50,600
Kolkata	Rs 46,250	Rs 50,450
Bangalore	Rs 46,300	Rs 50,500
Hyderabad	Rs 46,250	Rs 50,450

"Gold and silver witnessed high volatility and recovered from their lows after downbeat U.S. economic data, but a comeback by the dollar index and strength in the U.S. bond yields capped gains. The recent bearish sentiment in gold has been the direct result of market participants having genuine concern about upcoming rate hikes of 75 basis points at the final two FOMC meetings this year in November and December. The 10-year bond yields in the U.S. crossed 4.20% for the first time since 2008, thus weighing on global commodity prices," said Rahul Kalantri, Vice President, Commodities, Mehta Equities Ltd.

Gold trading 

If the market is volatile or bearish, investors tend to park their money in precious metals such as gold, so that they can give fixed returns in the future. Precious metals can also be used as a hedge against high inflation or periods of currency devaluation. 

Also read: How to Invest in digital gold this festive season: 4 instruments one can look at

Nowadays, people are opting for digital gold instead of gold jewellery and coins. Purchasing gold in the form of gold exchange-traded funds (Gold ETFs), sovereign gold bonds (SGBs), issued by the Reserve Bank of India, and gold mutual funds have been gaining popularity of late.