Gold prices increased marginally on Wednesday ahead of the US Federal Reserve rate hike announcement, which might again affect the prices of the yellow metal. Gold price in India were up to Rs 50,300 for 24-carat gold (10 grams), while for 22 carat gold (10 grams) it was Rs 46,110. Silver prices were also down and were trading at Rs 56,600 per kilogram.
On Tuesday, the yellow metal prices were in a tight range in domestic futures market. On MCX, gold futures almost touched six-month low of Rs 49,374 per 10 grams while silver contracts rose 0.5 per cent to Rs 57,005 per kg.
In the international market, spot gold was down 0.4 per cent at $1,669.80 per ounce, as of 0839 GMT. US gold futures were flat at $1,678.20. Spot silver slipped 1.4 per cent to $19.34 per ounce. Platinum gained 0.2 per cent to $920.56 and palladium dropped 2.5 per cent to $2,173.31.
|Gram||Price for 22-carat gold||Price for 24-carat gold|
|1 gram||Rs 4,611||Rs 5,030|
|10 grams||Rs 46,110||Rs 50,300|
In the national capital Delhi, the gold price for 24 carats (10 grams) is Rs 50,300, while 22 carat (10 grams) is available at Rs 46,110. In Kolkata, 24-carat gold (10 grams) is available for Rs 50,140, while 22 carat (10 grams) is Rs 45,960.
On the other hand, the price of 24-carat gold (10 grams) in Mumbai is Rs 50,140, while 22 carat gold (10 grams) is Rs 45,960. In Chennai, 24-carat gold (10 grams) is available for Rs 50,520, and 22 carat (10 grams) is available for Rs 46,310. It is to be noted that gold prices vary from city to city and depend on taxes and duties levied by the state government.
|Cities||22-Carat Gold Rates||24-Carat Gold Rates|
|Chennai||Rs 46,310||Rs 50,520|
|Mumbai||Rs 45,960||Rs 50,140|
|Delhi||Rs 46,110||Rs 50,300|
|Kolkata||Rs 45,960||Rs 50,140|
|Bangalore||Rs 46,010||Rs 50,190|
|Hyderabad||Rs 45,960||Rs 50,140|
All eyes on Fed interest hike
The Fed at the conclusion of its two-day policy meeting on Wednesday will likely deliver its third straight super-sized 75 basis point interest rate hike. Some analysts even see a 100-bps rate hike. The Bank of England and the Bank of Japan will decide policy on Thursday. Central banks around the world continue their fight against soaring inflation. Although gold is considered a hedge against inflation, higher interest rates lift the opportunity cost of holding zero-yield bullion.
Other factors which can affect the gold prices are global growth and recession worries and increased geopolitical tensions. The recent US-China tensions have heightened after US President Joe Biden said that the US would militarily support Taiwan if China were to attack.
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